As the price level falls, the quantity of real wealth _ and the aggregate quantity of real GDP demanded _.
A) increases; decreases
B) decreases; increases
C) increases; increases
D) decreases; decreases

Question

Quizplus · Accepted Answer

As the price level falls, the purchasing power of real wealth increases, leading to an increase in the aggregate quantity of real GDP demanded.

As the Price Level Falls, the Quantity of Real Wealth