How does the aggregate demand curve affect real GDP demand?

5) Because of the slope of the aggregate demand curve, we can say thatA) a decrease in the price level leads to a lower level of real GDP demanded.B) an increase in the price level leads to no change in the level of real GDP demanded.

Why does the aggregate demand curve slope downward?

an increase in the price level will lower net exports. Which of the following is one explanation as to why the aggregate demand curve slopes downward? Decreases in the price level raise real wealth and increase consumption spending. move the economy up along a stationary aggregate demand curve. increase the quantity of real GDP demanded.

Does a decrease in the price level lead to a higher GDP?

a decrease in the price level leads to a higher level of real GDP demanded. Because of the slope of the aggregate demand curve, we can say that a decrease in the price level leads to a higher level of real GDP demanded. Which of the following best describes the "wealth effect"? When the price level falls, the real value of household wealth rises.