Because of the slope(s)of the ________,we can say that a decrease in the price level leads to a higher level of real GDP demanded.
A)aggregate demand curve
B)short-run aggregate supply curve
C)long-run aggregate supply curve
D)short-run and long-run aggregate supply curves

Question

Quizplus · Accepted Answer

The slope of the aggregate demand curve is negative, meaning that a decrease in the price level (or inflation) results in an increase in real GDP demanded. This is known as the wealth effect, interest rate effect, and net export effect, which all contribute to higher consumption, investment, and exports at lower price levels.

Because of the Slope(s)of the ________,We Can Say That a Decrease