If the Aggregate Price Level Rises,holding Everything Constant,consumers Will

question 93

Multiple Choice

If the aggregate price level rises,holding everything constant,consumers will:

• A) need more money to purchase the same basket of goods,which will lead to an increase in the demand for money,hence an increase in the interest rate and a reduction in the quantity of aggregate output demanded via a decrease in investment demand.
• B) find their purchasing power has increased and will purchase more goods and services,leading to an increase in the aggregate output demanded.
• C) demand less aggregate output at all price levels,resulting in a shift right of the AD curve.
• D) need less money to purchase the same basket of goods,which will lead to a decrease in the demand for money,hence a decrease in the interest rate and an increase in the quantity of aggregate output demanded via an increase in investment demand.

---

Definitions:

Earnings Gap

The difference in average earnings or income between two or more groups, often used to highlight disparities based on gender, ethnicity, or age.

Educated Workers

Individuals who have received extensive formal training and education, making them qualified for specialized jobs.

Social Unionism

A form of unionism that goes beyond workplace issues, advocating for broader social and economic changes that benefit workers and the community.

Equity

Fairness or justice in the way people are treated, often in the context of social or economic policies.