As the Price Level Increases,the Amount of Goods and Services

question 22

Multiple Choice

As the price level increases,the amount of goods and services that consumers,businesses,and governments desire to purchase will change.This is depicted by:

• A)a leftward movement of the aggregate demand curve.
• B)a rightward movement of the aggregate demand curve.
• C)an upward movement along the aggregate demand curve.
• D)a downward movement along the aggregate demand curve.
• E)an increase in the slope of the aggregate demand curve.

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Definitions:

Cotton Price

The market value at which cotton is traded.

Marginal Product

The additional output that results from using one more unit of a particular input, keeping other inputs constant.

Skilled Labor

Workers who have specialized training, expertise, or qualifications, making them capable of performing complex tasks.

Value Marginal Product

The additional revenue generated by employing one more unit of a factor of production, such as labor or capital.