As the price level increases,the quantity of RGDP demanded ____,and when the price level decreases,the quantity of RGDP demanded in the economy ____.
A) decreases, decreases
B) increases, increases
C) increases, decreases
D) decreases, increases

Question

Quizplus · Accepted Answer

As the price level increases, the quantity of real GDP demanded decreases due to the wealth effect, interest rate effect, and exchange rate effect. Conversely, when the price level decreases, the quantity of real GDP demanded increases.

As the Price Level Increases,the Quantity of RGDP Demanded ____,And