The quantity of real GDP demanded equals $18.4 trillion when the price level is 95. If the price level falls to 90, the quantity of real GDP demanded equals
A) less than $18.4 trillion.
B) $18.4 trillion.
C) more than $18.4 trillion.
D) more information is needed to determine if the quantity of real GDP demanded increases, decreases, or does not change.

Question

Quizplus · Accepted Answer

When the price level falls, the quantity of real GDP demanded typically increases because goods and services become cheaper, leading to an increase in consumption, investment, and possibly net exports.

The Quantity of Real GDP Demanded Equals $18