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:

Quality Audit

A systematic examination of a quality system carried out by an internal or external quality auditor or audit team.

Scope Document

A document that outlines the project goals, deliverables, tasks, costs, and deadlines.

Project Appraisal

The evaluation process of analyzing and assessing the viability, reliability, and potential success of a project before any significant resources are committed.

Standard Deviation

A measure in statistics that indicates the dispersion or variability of a set of numerical data relative to its mean.