The ________, the ________ is the quantity of real GDP supplied and the ________ is the quantity of real GDP demanded.
A)lower the price level; greater; smaller
B)higher the price level; greater; smaller
C)greater the demand for labor; smaller
D)lower the supply of labor; greater; smaller
E)lower aggregate demand; greater; smaller

Question

Quizplus · Accepted Answer

According to the text, as the price level increases, the quantity of real GDP supplied increases but the quantity of real GDP demanded decreases. Choice A is incorrect because a lower price level would result in a smaller quantity of real GDP supplied and a greater quantity of real GDP demanded. Choice C is incorrect because it refers to the demand for labor, which is not directly related to the quantity of real GDP supplied and demanded. Choice D is incorrect because it refers to the supply of labor, which is also not directly related to the quantity of real GDP supplied and demanded. Choice E is incorrect because a lower aggregate demand would result in a smaller quantity of real GDP supplied and a smaller quantity of real GDP demanded.

The ________, the ________ Is the Quantity of Real GDP

The , the Is the Quantity of Real GDP