What Happens When the Price Level Falls

question 74

Multiple Choice

What happens when the price level falls?

• A) Total planned real spending remains constant.
• B) Total planned real spending increases.
• C) Total planned real spending also falls.
• D) Planned real spending on goods increases but planned real spending on services falls.

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Definitions:

Infant

A very young child, particularly before they can walk or speak; the earliest stage in human development.

Square

A geometric shape with four equal sides and four right angles.

A-not-B Error

A cognitive mistake made by infants during the sensorimotor stage where they repeatedly reach for a hidden object at a location where it was last found (A) rather than its new location (B).

Motor Perseveration

The repetition of a particular movement or action despite the absence or cessation of the stimulus or intention that originally triggered it.