Everything else held constant,a decrease in the price level will ________.
A)increase real aggregate output
B)decrease real aggregate output
C)increase aggregate demand
D)decrease aggregate demand

Question

Quizplus · Accepted Answer

A decrease in the price level will increase the real value of consumption spending, investment spending, net exports, and government spending, which in turn will increase aggregate demand and eventually result in an increase in real aggregate output through the multiplier effect.

Everything Else Held Constant,a Decrease in the Price Level Will