Why Does an Increase in the Price Level Cause a Decrease

question 178

Multiple Choice

Why does an increase in the price level cause a decrease in real GDP demanded?

• A)Consumer wealth increases.
• B)Net exports will increase.
• C)Interest rates decrease and cause higher investment.
• D)Net exports will decrease.

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Definitions:

Transduction

The process by which sensory information is converted into a form that can be processed by the brain.

Subliminal Priming

A psychological phenomenon where stimuli presented below the threshold of conscious awareness influence thoughts, feelings, or actions.

Processing Information

The act of receiving, analyzing, and interpreting data through cognitive processes to understand and interact with the environment.

Conscious Awareness

The mental state of being fully present and aware of thoughts, feelings, sensations, and the environment.