Author Question: Which of the following is true of a price level increase in an economy? a. When the price level ... (Read 38 times)

panfilo · **on:** Jun 30, 2018

Which of the following is true of a price level increase in an economy?
a. When the price level increases, the purchasing power of money increases.
b. When the price level increases, the purchasing power of money decreases.
c. When the price level increases, the purchasing power of money remains unchanged.
d. When the price level increases, the purchasing power of money either increases or decreases, depending upon the size of the national debt.
e. When the price level increases, the purchasing power of money either increases or decreases, depending upon the level of government expenditures.

Question 2

_____ is a resource whose quality is most often enhanced by technological change.
a. Capital
b. Land
c. Labor
d. Entrepreneurship
e. Credit