As the aggregate price level in an economy rises, ______.

a. interest rates increase
b. consumer demand increases
c. exports decrease
d. investment increases


a. interest rates increase

Economics

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If the market for labor is perfectly competitive, the profit maximizing level of labor occurs where

A) MRPL < W (the wage). B) MRPL = P (the output price). C) MRPL just exceeds W. D) MRPL = W. E) none of the above

Economics

How can a firm stay in business if it makes no economic profit in the long run?

What will be an ideal response?

Economics

The poverty line

A. is shifted downward from year-to-year. B. is constant. C. is raised from year-to-year. D. is tied to the unemployment rate.

Economics

How does the labor-leisure trade-off determine the supply of labor?

What will be an ideal response?

Economics