When the price level ________, equilibrium expenditure ________ and the quantity of real GDP demanded ________.
A) rises; increases; decreases
B) rises; decreases; increases
C) falls; increases; decreases
D) rises; increases; increases
E) falls; increases; increases

Question

Quizplus · Accepted Answer

When the price level falls, consumers have more purchasing power, leading to an increase in overall spending (equilibrium expenditure increases). This increase in spending leads to a higher quantity of real GDP demanded, as goods and services become relatively cheaper.

When the Price Level ________, Equilibrium Expenditure ________ and the Quantity

When the Price Level , Equilibrium Expenditure and the Quantity