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.

---

Definitions:

Carbon Dioxide Levels

The concentration of CO2 gas in the Earth's atmosphere, influential in the discussion of climate change.

Temperature Change

Refers to variations in the average temperature of an environment or the Earth over a specific period, significantly influencing climate patterns and ecosystems.

Earth's Atmosphere

The layer of gases surrounding Earth, essential for life, as it provides air, protects from harmful rays of the sun, and maintains the planet's temperature.

CFCs

Chlorofluorocarbons, a class of chemical compounds used in refrigeration, air conditioning, and aerosol propellants, known to contribute to ozone depletion.