Exhibit 9-10
-According to the graph in Exhibit 9-10,if the price level decreases,the new equilibrium level of real GDP must be
A)less than $20
B)less than $100
C)unchanged
D)greater than $100
E)greater than $200

Question

Exhibit 9-10 
-According to the graph in Exhibit 9-10,if the price level decreases,the new equilibrium level of real GDP must be
A)less than $20 
B)less than $100 
C)unchanged 
D)greater than $100 
E)greater than $200

Quizplus · Accepted Answer

A decrease in the price level typically leads to an increase in the quantity of goods and services demanded, shifting the equilibrium level of real GDP to a higher level, assuming the aggregate demand curve is downward sloping.

Exhibit 9-10 -According to the Graph in Exhibit 9-10,if the Price Level