When the price level increases people:
A. feel more wealthy.
B. demand a smaller quantity of goods and services in the aggregate.
C. have the same real value of assets, regardless of the change in the price level.
D. want to spend more, but can't due to the prices of all goods and services going up.
Answer: B
You might also like to view...
The belief that the ethically proper thing to do in any situation is the thing that maximizes society's overall happiness and minimizes society's overall suffering is called
A) utilitarianism. B) diminishing marginal utility. C) the benefits-received principle. D) transcendentalism.
Individuals are forced to make choices because
a. wants are unlimited. b. the supply of resources is infinite. c. wants are unlimited and resources are scarce. d. resources exceed wants.
Externalities can lead to inefficient economic outcomes because:
A) firms do not have to pay the full cost associated with using inputs that cause pollution. B) firms that produce public goods tend to be monopolies. C) Both A and B are correct. D) none of the above
If a perfectly competitive firm raises its price, its sales decrease to zero
a. True b. False