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charle [14.2K]
3 years ago
15

Aggregate demand is the of all goods and services (Real GDP) at different price levels, ceteris paribus. If a person has $100,00

0 in cash and the price level declines, then the of that $100,000 rises. The effect that defines what is happening here is the effect. A change in the price level will change the change the quantity demanded of Real GDP while a change in the money supply will change aggregate demand. a. True b. false
Business
1 answer:
kobusy [5.1K]3 years ago
5 0

Answer:

True

Explanation:

Firstly let understand what real GDP is and is simply the total monetary value of goods and services that has been adjusted for inflation. So for person that has $100,000 an increase in the general price level of goods and services will affect his demand for real goods and services as his purchasing power will drop and while a change in the money supply will change aggregate demand because change in money supply could be an increase or decrease in total money in circulation and it will either increase or decrease purchasing power.

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Answer:

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Complete question:

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