The aggregate-demand curve shows that a decrease in the price level
A)decreases the dollar value of goods and services demanded in the economy.
B)decreases the real value of goods and services demanded in the economy.
C)increases the dollar value of goods and services demanded in the economy.
D)increases the real value of goods and services demanded in the economy.

Question

Quizplus · Accepted Answer

A decrease in the price level increases the real value of money, leading to higher purchasing power and thus increasing the real value of goods and services demanded in the economy.

The Aggregate-Demand Curve Shows That a Decrease in the Price