The Fact That Real GDP Decreases When the Price Level

question 56

Multiple Choice

The fact that real GDP decreases when the price level rises is a property of

• A)the open economy effect.
• B)the interest rate effect.
• C)the AD curve.
• D)the real-balance effect.

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Definitions:

Fiberglass Material

A composite material made from fine fibers of glass and often used in a variety of applications, including construction and automobile parts.