If the price level decreases, what will happen to the level of real GDP supplied?
A)It will usually decrease.
B)It will usually increase.
C)Nothing.
D)It will decrease at first and then increase.

Question

Quizplus · Accepted Answer

When the price level decreases, the level of real GDP supplied usually decreases because producers are less willing to supply goods and services at lower prices, leading to a reduction in production.

If the Price Level Decreases, What Will Happen to the Level