40.4k views
2 votes
As the aggregate price level rises, aggregate demand ____________ resulting in a __________ to total output, or the real GDP. A. falls/increase B. rises/increase C. rises/decrease D. falls/decrease

User JP Foster
by
8.0k points

2 Answers

2 votes

falls/decrease is the correct answer

User Jszobody
by
7.7k points
6 votes
I believe the answer is D. Falls/decrease
Increase in aggregate price tend to discourage consumers to go out and make a purchase, which will lead to the fall of aggregate demand.
This will create an abundance of that product in the market, and the market will decrease the total output as a response.
User Geza Kerecsenyi
by
8.2k points