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26 October, 12:49

When the price level rises from 104 to 124, real GDP falls from $5 trillion to $4 trillion. What is a possible explanation for this event? A. Less investment B. Falling exports C. Decreased consumption D. All of the above

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  1. 26 October, 16:16
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    Option "D" is the correct answer to the following question.

    Explanation:

    Investment in any country reduces due to an increase in the price level, because of that decrease in investment, the gross domestic product of that country also decreases.

    Due to less production, the country is unable to export the goods.

    Increasing the level of price increases the value of consumption goods, which in turn reduces the demand for consumption in the country.
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Home » Business » When the price level rises from 104 to 124, real GDP falls from $5 trillion to $4 trillion. What is a possible explanation for this event? A. Less investment B. Falling exports C. Decreased consumption D. All of the above
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