The inverse relationship between the general price level and real GDP is depicted by
A) a downward-sloping demand curve for an individual good.
B) the aggregate demand curve.
C) an upward-sloping demand curve.
D) the aggregate supply curve.
E) a vertical long-run aggregate supply curve.

Question

Quizplus · Accepted Answer

The aggregate demand curve represents the inverse relationship between the general price level and real GDP, indicating that as the price level decreases, the quantity of goods and services demanded increases, and vice versa.

The Inverse Relationship Between the General Price Level and Real