if-there-is-a-decrease-in-aggregate-demand-due-to-reduced-consumer-confidence-wh

Question

If there is a decrease in aggregate demand due to reduced consumer confidence, what is likely to happen to the price level and GDP in the short run?

Accepted Answer

Price level decreases, GDP decreases

Answer

Price level decreases, GDP remains constant

Answer

Price level increases, GDP increases

Answer

Price level remains constant, GDP decreases