A Reason Why an Increase in the Price Level Decreases

question 50

Multiple Choice

A reason why an increase in the price level decreases the quantity of real GDP demanded is that

• A) potential GDP decreases.
• B) the real interest rate falls.
• C) the inflation rate decreases.
• D) the buying power of money increases.
• E) the price of domestic goods and services increases relative to foreign goods and services.

---

Definitions:

Compression Stockings

Specially designed stockings that apply gentle pressure to legs to improve blood flow and reduce swelling or risk of blood clot formation.

Ambulation

The ability to walk from place to place independently, with or without an assistive device.

Atrophied Muscles

Muscles that have decreased in size and strength due to lack of use, injury, or disease.

Pressure Injury

Damage to the skin and underlying tissue resulting from prolonged pressure on the skin.