Question

Generally speaking, as the aggregate price level rises, aggregate demand falls, resulting in

a. a decrease in aggregate supply.
b. an increase in aggregate supply.
c. an increase in total output, or the real gdp.
d. a decrease in total output, or the real gdp.

Answer 1

The correct answer to this question is letter "d. a decrease in total output, or the real gdp." Generally speaking, as the aggregate price level rises, aggregate demand falls, resulting in a decrease in total output, or the real gdp. Hope this helps answer your question.