Other things being equal, along the aggregate demand curve, a higher price level is associated with
A)a decrease in the quantity of nominal GDP demanded.
B)a decrease in the quantity of real GDP demanded.
C)higher income levels.
D)an increase in the quantity of real GDP demanded.

Question

Quizplus · Accepted Answer

Along the aggregate demand curve, a higher price level leads to a decrease in the quantity of real GDP demanded due to the wealth effect, interest rate effect, and exchange rate effect.

Other Things Being Equal, Along the Aggregate Demand Curve, a Higher