How does an increase in the price level affect the position of the C + I + G + X curve and in turn the equilibrium level of real GDP?
A. The C + I + G + X curve shifts up, thereby increasing the equilibrium level of real GDP.
B. The C + I + G + X curve shifts down, thereby reducing the equilibrium level of real GDP.
C. The C + I + G + X curve shifts up, thereby reducing the equilibrium level of real GDP.
D. The C + I + G + X curve shifts down, thereby increasing the equilibrium level of real GDP.
Answer: B
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