An Increase in the Price Level Results in A(n)________ in the Quantity

question 242

Multiple Choice

An increase in the price level results in a(n) ________ in the quantity of real GDP demanded because ________.

• A)decrease; a higher price level reduces consumption,investment,and net exports.
• B)increase; a higher price level reduces consumption,investment,and net exports.
• C)decrease; a higher price level increases consumption,investment,and net exports.
• D)increase; a higher price level increases consumption,investment,and net exports.

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Definitions:

Labour Hours

The total number of hours worked by all employees in a given period, often used to measure workforce productivity.

Labour Productivity

a measure of economic performance that calculates the amount of goods and services produced per hour worked by employees.

Multifactor Productivity

An indicator of economic efficiency that assesses the ratio of total goods and services output to the sum of inputs employed in their production.