A decrease in aggregate demand will generate _____ in real gdp and _____ in the price level in the short run. no change; an increase a decrease; no change a decrease; a decrease an increase; no change
A decrease in aggregate demand will generate a decrease in real GDP and a decrease in the price level in the short run. When the aggregate demand is decreased, the total economic output made by a country will also decrease, which results in lower GDP amount. The decrease in aggregate demand will also result in a lower price for the short run because it forced the sellers to lower its selling price in order to get rid of the products from their warehouse
