If the price level increases,there is ________ the AD curve and the quantity of real GDP demanded ________.
A)a movement upward along;increases
B)a movement downward along;increases
C)a movement upward along;decreases
D)a leftward shift in;decreases
E)no change in;does not change

Question

Quizplus · Accepted Answer

An increase in the price level leads to a decrease in the purchasing power of money, which in turn leads to a decrease in consumer demand, investment demand, and net export demand. As a result, the aggregate demand curve shifts upward and leftward, indicating a decrease in the quantity of real GDP demanded at every price level. Therefore, the correct answer is C, a movement upward along the AD curve, and a decrease in the quantity of real GDP demanded.

If the Price Level Increases,there Is ________ the AD Curve