Which of the following statements is correct?
A)The price level does not affect the level of real GDP demanded.
B)The lower the price level,the greater the quantity of real GDP demanded.
C)The lower the price level,the more the aggregate demand curve shifts rightward.
D)The lower the price level,the more the aggregate demand curve shifts leftward.
E)The higher the price level,the more the aggregate demand curve shifts rightward.

Question

Quizplus · Accepted Answer

According to the inverse relationship between price level and quantity demanded, when the price level is lower, consumers are more willing and able to purchase a greater quantity of goods and services, leading to an increase in real GDP demanded. This is reflected in the downward slope of the aggregate demand curve. Therefore, choice B is correct. Choices A, C, D, and E are not correct as they contradict this relationship or are not supported by the theory of aggregate demand.

Which of the Following Statements Is Correct