If total expenditures fall at a given price level,then the
A) quantity demanded of Real GDP rises.
B) quantity demanded of Real GDP falls.
C) AD curves shifts to the right.
D) AD curve shifts to the left.
E) none of the above

Question

Quizplus · Accepted Answer

A fall in total expenditures would lead to a decrease in aggregate demand, represented by a leftward shift in the AD curve. This is because the total expenditures component of GDP is one of the key drivers of aggregate demand. As a result, the quantity demanded of Real GDP would also fall.

If Total Expenditures Fall at a Given Price Level,then the