If You Have $1,000 in Wealth and the Price Level

question 168

Multiple Choice

If you have $1,000 in wealth and the price level increases 20 percent, then

• A) the $1,000 dollars will buy 20 percent more goods and services.
• B) you will be able to buy fewer goods, but the real value of those goods will increase.
• C) the real value of the $1,000 increases.
• D) the $1,000 will buy fewer goods and services.

---

Definitions:

More Pleasant

Referring to something that is nicer, more enjoyable, or more agreeable in comparison to something else.

Talcott Parsons

An American sociologist known for his contributions to social action theory and for developing the framework of structural functionalism.

Polity

An organized society or state as a political entity, including its governance, constitution, and political principles.

Political Subsystem

The political subsystem refers to the components and structures within a society that are responsible for decision-making, governance, and the implementation of laws and policies.