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

Question

Quizplus · Accepted Answer

An increase in the price level typically leads to an increase in the quantity of real GDP supplied because producers are willing to supply more at higher prices.

If the Price Level Increases from 110