A decrease in the price level results in a(n)________ in the quantity of real GDP demanded because a lower price level ________ consumption,investment,and net exports.
A)decrease; increases
B)increase; increases
C)decrease; decreases
D)increase; decreases

Question

Quizplus · Accepted Answer

A decrease in the price level increases the quantity of real GDP demanded because consumers have more purchasing power, encouraging more consumption, investment, and net exports.

A Decrease in the Price Level Results in A(n)________ in the Quantity