When the price level ________, equilibrium expenditure ________ and the quantity of real GDP demanded ________.
A) falls; increases; increases
B) rises; increases; decreases
C) falls; increases; decreases
D) rises; decreases; increases
E) rises; increases; increases

Question

Quizplus · Accepted Answer

When the price level falls, the purchasing power of money increases, leading to an increase in equilibrium expenditure and an increase in the quantity of real GDP demanded.

When the Price Level ________, Equilibrium Expenditure ________ and the Quantity

When the Price Level , Equilibrium Expenditure and the Quantity