An Increase in the Price Level Results in A(n)________ in the Quantity

question 242

Multiple Choice

An increase in the price level results in a(n) ________ in the quantity of real GDP demanded because ________.

• A)decrease; a higher price level reduces consumption,investment,and net exports.
• B)increase; a higher price level reduces consumption,investment,and net exports.
• C)decrease; a higher price level increases consumption,investment,and net exports.
• D)increase; a higher price level increases consumption,investment,and net exports.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Partial Billings

The process of issuing invoices for a fraction of the total amount of a contract or project before its completion.

Gross Profit

The difference between sales revenue and the cost of goods sold (COGS), indicating the profit made before deducting operating expenses.

Construction Costs

Expenses related directly to the construction of a building or infrastructure project, including materials, labor, and overhead.