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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

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2 votes

falls/decrease is the correct answer

answered
User Jszobody
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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.
answered
User Geza Kerecsenyi
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