The aggregate demand curve shows that, if other factors are held constant, a
A)higher price level results in a decrease in the quantity of real GDP demanded.
B)lower price level results in inflationary conditions.
C)higher price level results in a lower interest rate.
D)higher price level results in an increase in the quantity of real GDP demanded.

Question

Quizplus · Accepted Answer

The aggregate demand curve is downward sloping, indicating that as the price level rises, the quantity of real GDP demanded decreases, assuming other factors remain constant.

The Aggregate Demand Curve Shows That, If Other Factors Are