Which of the Following Is Not True About a Change

question 97

Multiple Choice

Which of the following is not true about a change in the price level?

• A)It will shift the aggregate demand curve.
• B)It will shift the aggregate expenditure curve.
• C)It will result in a new value of equilibrium real GDP demanded.
• D)It will change the real value of dollar-denominated assets.
• E)It will shift the consumption function.

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Definitions:

Price Level

The comprehensive mean price across all goods and services in the current economy.

Classical Dichotomy

A concept in economics that separates real variables, which are quantities or measures not adjusted for inflation, from nominal variables, which are adjusted for inflation.

Real GDP

A measure of the value of all goods and services produced within a country over a specific time period, adjusted for inflation.

Nominal Wage

The wage paid to employees in current dollars, without adjustment for inflation, reflecting the actual amount of money received.