If the price level increases from 110.0 to 115.0, the quantity of
A) potential GDP will decrease.
B) potential GDP will increase.
C) real GDP demanded will increase.
D) real GDP supplied will decrease.
E) real GDP supplied will increase.

Question

Quizplus · Accepted Answer

When the price level increases, firms are generally willing to supply more goods and services because they can sell them at higher prices, leading to an increase in real GDP supplied.

If the Price Level Increases from 110