As the price level decreases,what is the effect on the quantity of RGDP demanded in the economy?
A)It first decreases and then increases.
B)It decreases.
C)It increases.
D)It remains the same.

Question

Quizplus · Accepted Answer

When the price level decreases, the purchasing power of consumers and businesses increases, making goods and services cheaper. This leads to an increase in demand for those goods and services, which in turn creates an increase in the quantity of Real Gross Domestic Product (RGDP) demanded in the economy. Therefore, the correct answer is C, the quantity of RGDP demanded increases.

As the Price Level Decreases,what Is the Effect on the Quantity