When the price level falls from 135 to 120, the aggregate level of GDP supplied falls from $140 billion to $125 billion. This ________ relationship represents the ________ relationship between GDP and the price level

GDP can increase from one year to the next by:

A) increases in prices while quantities of goods and services are constant. B) increases in the quantities of goods and services produced while prices remain constant. C) both prices and quantities of goods and services increase. D) all of the above.

Falling interest rates cause the market value of previously issued bonds to

a. rise. b. fall. c. remain unchanged. d. increase during periods of inflation but decline during periods of deflation.