A lower price level combined with a decrease in real GDP occurs when the
A) short-run aggregate supply curve shifts rightward.
B) short-run aggregate supply curve shifts leftward.
C) aggregate demand curve shifts rightward.
D) aggregate demand curve shifts leftward.

Question

Quizplus · Accepted Answer

A decrease in the aggregate demand curve leads to a lower price level and a decrease in real GDP, reflecting a reduction in the overall demand for goods and services in the economy.

A Lower Price Level Combined with a Decrease in Real