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A rise in the price level changes aggregate demand because

jyang3

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A rise in the price level changes aggregate demand because

A rise in the price level changes aggregate demand because
A) firms increase their investment when prices are higher.
B) the real value of people's wealth varies directly with the price level and so does their spending.
C) the real value of people's wealth decreases and so they decrease their consumption.
D) the more money people have, the more it is worth and hence the more goods and services they demand.

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Macroeconomics

Edition: 12^th

Author: Parkin

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brake

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More solutions for this book are available here

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jyang3 Author

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5 years ago

Smart ... Thanks!

Transonic

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Yesterday

Good timing, thanks!

kamikazekota

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Thanks

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