A Rise in the Price Level Changes Aggregate Demand Because

question 203

Multiple Choice

A rise in the price level changes aggregate demand because

• A) the real value of people's wealth decreases and so they decrease their consumption.
• B) the real value of people's wealth varies directly with the price level and so does their spending.
• C) people like to spend more when prices are higher.
• D) the more money people have, the more it is worth and hence the more goods and services they demand.

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Definitions:

CTD

Stands for Countdown Timer Delay, often used in electronics and programming to introduce a delay before an action is executed.

Count-Down Counter

A Count-Down Counter is a digital device or mechanism that counts down from a specified number to zero, often used in timing or as part of control systems.

True-To-False Transitions

Changes in logic state from a true (high) condition to a false (low) condition, often monitored in digital circuits for triggering events or actions.

False-To-True Transitions

In digital logic, a change in state from a logical 0 (false) to a logical 1 (true).