What Does a Rise in the Economy's Overall Level of Prices

question 80

Multiple Choice

What does a rise in the economy's overall level of prices tend to do?

• A) It tends to raise both the quantity demanded and supplied of goods and services.
• B) It tends to raise the quantity demanded of goods and services but lower the quantity supplied.
• C) It tends to lower the quantity demanded of goods and services but raise the quantity supplied.
• D) It tends to lower both the quantity demanded and the quantity supplied of goods and services.

---

Definitions:

Market Demand

The total quantity of a product or service that all consumers in a market are willing and able to buy at various prices, given a period of time.

Related Goods

Products or services that are either complements or substitutes to one another, affecting each other's demand and supply.

Cost of Resources

The total expense incurred to acquire resources needed for production, including raw materials, labor, and capital.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a specified period.