If the price level falls,the real value of a dollar
A)rises,so people will want to buy more.This response helps explain the slope of the aggregate demand curve.
B)rises,so people will want to buy more.This response shifts aggregate demand to the right.
C)falls,so people will want to buy less.This response helps explain the slope of the aggregate demand curve.
D)falls,so people will want to buy less.This response shifts aggregate demand to the left.

Question

Quizplus · Accepted Answer

When the price level falls, the real value of a dollar increases, meaning that people can buy more goods and services with the same amount of money. This causes an increase in demand, which helps explain the downward slope of the aggregate demand curve.

If the Price Level Falls,the Real Value of a Dollar