Which of the Following Will Occur When an Economy's Price

question 171

Multiple Choice

Which of the following will occur when an economy's price level increases?

• A) Aggregate demand will increase.
• B) The purchasing power of money will increase.
• C) The purchasing power of money will decrease.
• D) The real value of wealth will increase.

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Definitions:

Ozone

A molecule made of three oxygen atoms, O3, forming a layer in the Earth's stratosphere that protects life by absorbing most of the sun's harmful ultraviolet radiation.

Resonance Structures

Representations of a molecule showing different configurations of electron pairs, to depict delocalization of electrons within the molecule.

Nitrite Ion

A polyatomic ion with the molecular formula NO2-, derived from nitrous acid.

Methane

A colorless, odorless flammable gas that is the simplest alkane, used as a fuel and in chemical synthesis, with the chemical formula CH4.