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Considering that as GDP goes up, inflation goes up, why does AD slope downwards?
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I'm self-studying AP Macroeconomic right now. Shouldn't prices rise as GDP grows because growing GDP increases inflation? I also understand that as price falls, more people want to buy, so GDP goes up. How do these two things counteract each other? Proposing an answer to my own question here: the effect of inflation is relatively negligible on price.
Quick answer would be appreciated lol
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