Other things equal,a higher price level is associated with
A)a higher real GDP.
B)a lower real GDP.
C)a lower nominal GDP.
D)higher income levels.

Question

Quizplus · Accepted Answer

A higher price level is associated with a lower real GDP because as prices increase, the purchasing power of consumers decreases, leading to a decrease in demand for goods and services. This can lead to a decrease in production and a reduction in real GDP.

Other Things Equal,a Higher Price Level Is Associated with