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:

Completed Goods

Finished products ready for sale or distribution, produced from raw materials through the manufacturing process.

Completed Goods

Finished products that are ready for sale or distribution, having passed through all stages of production.