Moving along the aggregate demand curve, a decrease in the quantity of real GDP demanded is a result of
A) an increase in income.
B) an increase in the price level.
C) a decrease in the price level.
D) a decrease in income.

Question

Quizplus · Accepted Answer

According to the inverse relationship between price level and real GDP demanded, a decrease in the quantity of real GDP demanded will result from an increase in the price level.

Moving Along the Aggregate Demand Curve, a Decrease in the Quantity