Why does an increase in the price level cause a decrease in real GDP demanded?

Name: Why does an increase in the price level cause a decrease in real GDP demanded?
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Question

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An increase in the price level will cause investments and exports to be more expensive, leading to a decrease in demand for these goods and a decrease in real GDP demanded. This is referred to as the "wealth effect" where consumers feel poorer as the price level increases, leading them to spend less.

Why Does an Increase in the Price Level Cause a Decrease