The correct answer is c. increase; increases.

Here's why:

1. A decrease in the price level makes goods and services cheaper. This means that consumers can buy more with the same amount of money, which increases consumption.

2. Similarly, when goods and services are cheaper, businesses are more likely to invest in new equipment, buildings, etc., which increases investment.

3. A lower price level also makes a country's goods and services cheaper for foreigners, which increases net exports.

4. All of these factors lead to an increase in the quantity of real GDP demanded.

Question

The correct answer is c. increase; increases.

Here's why:

1. A decrease in the price level makes goods and services cheaper. This means that consumers can buy more with the same amount of money, which increases consumption.

2. Similarly, when goods and services are cheaper, businesses are more likely to invest in new equipment, buildings, etc., which increases investment.

3. A lower price level also makes a country's goods and services cheaper for foreigners, which increases net exports.

4. All of these factors lead to an increase in the quantity of real GDP demanded.

Knowee AI · Accepted Answer

The correct answer is c. increase; increases.

Here's why:

1. A decrease in the price level makes goods and services cheaper. This means that consumers can buy more with the same amount of money, which increases consumption.

2. Similarly, when goods and services are cheaper, businesses are more likely to invest in new equipment, buildings, etc., which increases investment.

3. A lower price level also makes a country's goods and services cheaper for foreigners, which increases net exports.

4. All of these factors lead to an increase in the quantity of real GDP demanded.

A decrease in the price level results in a(n) in the quantity of real GDP demanded because a lower price level consumption, investment, and net exports.Question 9Answera.decrease; decreasesb.decrease; increasesc.increase; increasesd.increase; decreases

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A decrease in the price level results in a(n) ________ in the quantity of real GDP demanded because a lower price level ________ consumption, investment, and net exports.Question 9Answera.decrease; decreasesb.decrease; increasesc.increase; increasesd.increase; decreases

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A decrease in the price level results in a(n) in the quantity of real GDP demanded because a lower price level consumption, investment, and net exports.Question 9Answera.decrease; decreasesb.decrease; increasesc.increase; increasesd.increase; decreases