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

Question

Quizplus · Accepted Answer

According to the law of demand, as the price level increases, the quantity of real GDP demanded decreases. Therefore, a higher price level is associated with a decrease in the quantity of real GDP demanded.

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