Moving along the aggregate demand curve, a decrease in the quantity of real GDP demanded is a result of
A) an increase in the price level.
B) a decrease in the price level.
C) an increase in income.
D) a decrease in income.

Question

Quizplus · Accepted Answer

An increase in the price level leads to a decrease in the quantity of real GDP demanded, as goods and services become more expensive for consumers, reducing their purchasing power. This movement along the aggregate demand curve reflects the inverse relationship between the price level and the quantity of real GDP demanded.

Moving Along the Aggregate Demand Curve, a Decrease in the Quantity