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

Question

Quizplus · Accepted Answer

A decrease in real GDP and a lower price level typically occur when the aggregate demand curve shifts leftward, indicating reduced demand in the economy.

A Lower Price Level Combined with a Decrease in Real