What Is the Effect of an Increase in the Price

question 39

Multiple Choice

What is the effect of an increase in the price level?

• A)The real value of dollar-denominated assets will fall.
• B)The aggregate expenditure line will shift upward.
• C)The equilibrium level of output demanded will rise.
• D)There will be downward movement along a particular aggregate demand curve.
• E)The aggregate demand curve will shift rightward.

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Definitions:

Welfare Program

Governmental provision of economic assistance to individuals in need, aiming to support those facing poverty, providing benefits such as food stamps or healthcare support.

Minimum Income

The least amount of earnings necessary for an individual or family to meet their basic needs for living.

Means-tested

A determination of whether an individual or family is eligible for government assistance based on their income and assets.

Redistribution Programs

Government policies designed to reduce economic inequality by redistributing income from wealthier segments of society to poorer ones.