Because of the Wealth Effect, a Rising Aggregate Price Level

question 143

Multiple Choice

Because of the wealth effect, a rising aggregate price level _____ the purchasing power of wealth and therefore _____ output demanded.

• A) increases; increases
• B) increases; reduces
• C) reduces; increases
• D) reduces; reduces

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Definitions:

Voluntary Muscles

Muscles that can be consciously controlled by the individual, such as skeletal muscles that move parts of the body.

Cramp

A sudden, involuntary contraction of a muscle or group of muscles causing pain.

Skeletal Muscles

Muscles attached to bones that are responsible for movement of the body.

Attachment Point

A specific location on the body where muscles, ligaments, or other structures are connected to bone.