Deflation will
A)increase aggregate demand.
B)increase the quantity of real GDP demanded.
C)decrease aggregate demand.
D)decrease the quantity of real GDP demanded.
E)have no impact on the quantity of real GDP demanded.

Question

Quizplus · Accepted Answer

Deflation, a decrease in the general price level, increases the real value of money, allowing consumers and businesses to purchase more goods and services, thus increasing the quantity of real GDP demanded.

Deflation Will