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Author Question: An increase in the price level ________ real wealth, which causes consumption to ________. A) ... (Read 110 times)

khang

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on: Jun 29, 2018
An increase in the price level ________ real wealth, which causes consumption to ________.
 
  A) lowers; decrease B) raises; decrease C) lowers; increase D) raises; increase

Question 2

In the dynamic aggregate demand and aggregate supply model, what is the result of aggregate demand increasing faster than potential real GDP?
 
  What will be an ideal response?


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perkiness

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

Aggregate demand increasing faster than potential real GDP results in inflation.


khang

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Reply #2 on: Jun 29, 2018
Correct answers!


perkiness

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Reply #3 on: Jun 29, 2018
Great! Please up vote :D


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