A decrease in real GDP causes a the money demand curve. A decrease in interest rates causes a the money demand curve. An increase in the aggregate price level causes a the money demand curve.

A decrease in real GDP causes a decrease in the money demand curve. A decrease in interest rates causes an increase in the money demand curve. An increase in the aggregate price level causes an increase in the money demand curve.

Explanation:

A demand curve is a graphical representation of the demand for money. Highlighting the demand for money in relation to price.

If real GDP increases, it will increase the need to have money to purchase goods, as there is already an increase in goods produced or available in the market. The need to have more money to purchase the more goods available in the market will drop once real GDP drops.

When the quantity of money demanded increases, it affects the price as well, as price increases, causing an increase in the demand curve. Talking about interest rates, a decrease in the interest rate will lead to an increase in the quantity of money demanded which will lead to an increase in the money demand curve.

The aggregate price level measures the entire prices in the economy. It gives a quick view of how the market pricing system is.

When the price level is high, an individual will have to spend more meaning there will be an increase in the demand for money to purchase the desired goods leading to a direct increase in the money demand curve.

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