There is a general overall __________ relationship between the price level and ____________.
A)negative;aggregate expenditures on GDP
B)positive;aggregate expenditures from the government
C)negative;nominal expenditures from the government
D)positive;nominal expenditures from households

Question

Quizplus · Accepted Answer

The price level and aggregate expenditures on GDP have a negative relationship, meaning that as the price level increases, the aggregate expenditures on GDP decrease. This is due to the fact that higher prices decrease the purchasing power of consumers, leading to reduced demand for goods and services.

There Is a General Overall __________ Relationship Between the Price