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When the price level rises from 104 to​ 124, real GDP falls from​ $5 trillion to​ $4 trillion. What is a possible explanation for this​ event? A. Less investment B. Falling exports C. Decreased consumption D. All of the above

User Laguna
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Answer:

Option "D" is the correct answer to the following question.

Step-by-step explanation:

Investment in any country reduces due to an increase in the price level, because of that decrease in investment, the gross domestic product of that country also decreases.

Due to less production, the country is unable to export the goods.

Increasing the level of price increases the value of consumption goods, which in turn reduces the demand for consumption in the country.

User Bnuhero
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