The quantity of real GDP demanded equals $12.2 trillion when the price level is 90.If the price level rises to 95,the quantity of real GDP demanded equals
A) less than $12.2 trillion.
B) $12.2 trillion.
C) more than $12.2 trillion.
D) more information is needed to determine if the quantity of real GDP demanded increases, decreases, or does not change.

Question

Quizplus · Accepted Answer

According to the law of demand, when the price level rises, the quantity demanded of real GDP decreases. Therefore, if the price level increases from 90 to 95, the quantity of real GDP demanded will decrease, and it will be less than $12.2 trillion.

The Quantity of Real GDP Demanded Equals $12