If the price level in the United States decreases, domestic goods will become relatively cheaper than foreign goods, the demand for U.S.-made goods will increase, and the quantity of RGDP demanded will increase.

Question

Quizplus · Accepted Answer

A decrease in price level in the US would lead to an increase in the demand for US-made goods due to their comparatively cheaper prices. The increase in demand for US-made goods would lead to an increase in quantity of real GDP demanded.

If the Price Level in the United States Decreases, Domestic