An Increase in the Price Level ________ the Aggregate Quantity

question 186

Multiple Choice

An increase in the price level ________ the aggregate quantity supplied and ________ the aggregate quantity demanded.

• A)increases;increases
• B)increases;decreases
• C)decreases;increases
• D)decreases;decreases
• E)does not change;decreases

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Definitions:

Private Enterprises

Businesses owned by individuals or groups, not by the state, operating for profit in a free market.

Loans

Borrowed sums of money that are expected to be paid back with interest.

Tariffs

Taxes imposed by a government on goods and services imported from other countries, used to control trade, raise government revenue, or protect domestic industries.