If the price level increases, there is ________ the AD curve and the quantity of real GDP demanded ________.
A) no change in; does not change
B) a movement upward along; increases
C) a movement upward along; decreases
D) a leftward shift in; decreases
E) a movement downward along; increases

Question

Quizplus · Accepted Answer

An increase in the price level results in a movement upward along the Aggregate Demand (AD) curve, leading to a decrease in the quantity of real GDP demanded. This is because as prices rise, the purchasing power of money falls, leading to a decrease in the quantity of goods and services demanded.

If the Price Level Increases, There Is ________ the AD