If the Price Level Rises, the Effect on the Expenditure

question 135

Multiple Choice

If the price level rises, the effect on the expenditure schedule and equilibrium real GDP is to

• A)increase both.
• B)decrease both.
• C)shift the expenditure schedule upward and decrease equilibrium real GDP.
• D)shift the expenditure schedule downward and increase equilibrium real GDP.

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Definitions:

Unionization

The process of organizing the employees of a company into a labor union to seek collective bargaining rights and protect their interests.

Operations Management

The administration of business practices to create the highest level of efficiency possible within an organization, focusing on converting materials and labor into goods and services as effectively as possible.

Material and Human Resources

The tangible resources (like equipment and raw materials) and the workforce needed to carry out organizational operations.

Internal and External Customers

Refers to the individuals or entities within (internal) and outside (external) an organization that receive and are affected by its services or products.