An Increase in the Purchasing Power of Money Would Not,on

question 266

Multiple Choice

An increase in the purchasing power of money would not,on average,result in an increase in the purchasing power of people's income because a ________ price level would likely mean ________ wages and salaries.

• A)rising;falling
• B)rising;rising
• C)falling;falling
• D)falling;rising

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Definitions:

Aggregate Supply Curve

A graphical representation showing the relationship between the total supply of goods and services produced in an economy and the price level.

Price Level

The aggregated mean of prices for all economic goods and services.

Positively Sloped

Describes a line on a graph that rises from left to right, indicating a positive relationship between two variables where an increase in one variable corresponds with an increase in the other.

Aggregate Supply Curve

A graphical representation of the total amount of goods and services that companies in an economy are willing and able to produce at different price levels.