The relationship between the price level and the amount of real GDP is:
A)inverse.
B)positive.
C)no correlation.
D)perfectly correlated.

Question

Quizplus · Accepted Answer

The relationship between the price level and the amount of real GDP is inverse, meaning that as the price level increases, the amount of real GDP decreases. This is known as the inverse relationship between price and quantity demanded, described by the law of demand in economics. As prices rise, consumers are less willing and able to purchase the same quantity of goods and services, thereby leading to a decrease in real GDP.

The Relationship Between the Price Level and the Amount of Real