The aggregate demand curve shows that, if other factors are held constant, the higher the price level, the
A) larger consumption expenditure.
B) greater the quantity of real GDP demanded.
C) smaller the quantity of real GDP demanded.
D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

The higher the price level, the smaller the quantity of real GDP demanded due to the decrease in consumer purchasing power and increase in the cost of production.

The Aggregate Demand Curve Shows That, If Other Factors Are