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AP Macroeconomics
Unit 3 – National Income and Price Determination
Topic 3.1
How does severe drought in China affecting the country's inflation rate impact aggregate demand?
Movement along the curve: the amount of real GDP will decrease due to an increase in the price level (inflation).
Decrease in aggregate demand due to a decrease in consumer spending.
No effect on aggregate demand.
Increase in aggregate demand due to an increase in consumer spending.
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AP Macroeconomics - 3.1 Aggregate Demand
Key terms
Aggregate demand
Inflation Rate
Severe Drought
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About Us
About Fiveable
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Testimonials
Code of Conduct
Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
Request a Feature
Report an Issue
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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