Positively related to the price level because a decline in the price level has a negative effect on the demand for output

Negatively related to the price level because a decline in the price level has a negative effect on the demand for output

Positively related to the price level because a decline in the price level has a negative effect on the demand for output

Negatively related to the price level because a decline in the price level has a negative effect on the demand for output

Economics · Macroeconomics

Aggregate demand is:

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Positively related to the price level because a decline in the price level has a positive effect on the demand for output
2Positively related to the price level because a decline in the price level has a negative effect on the demand for output
3Negatively related to the price level because a decline in the price level has a positive effect on the demand for output✓
4Negatively related to the price level because a decline in the price level has a negative effect on the demand for output

Correct answer

Negatively related to the price level because a decline in the price level has a positive effect on the demand for output

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