When a Change in the Price Level Leads to a Change

question 124

Multiple Choice

When a change in the price level leads to a change in saving,this is known as the:

• A) wealth effect.
• B) international trade effect.
• C) savings effect.
• D) interest rate effect.
• E) output effect.

---

Definitions:

Sustained Decline

A continuous decrease over a significant period, often referring to economic indicators like GDP or employment.

Output

The quantity of goods or services produced in a given time period by a firm, industry, or country.

Contraction

A period during which the economy declines as reflected by falling output, employment, income, and other aggregate measures.

Expansion

A period during which the economy grows as reflected by rising output, employment, income, and other aggregate measures