Ask Question
Advanced Placement (AP)Advanced Placement (AP)
18 September, 17:25

If the average price level decreases,

what happens to the real output?

A. It remains the same.

B. It decreases.

C. It increases.

D. It has no impact from the price.

+1
Answers (1)
  1. 18 September, 17:33
    0
    The intuition behind the real wealth effect is that when the price level decreases, it takes less money to buy goods and services. The money you have is now worth more and you feel wealthier. So, in response to a decrease in the price level, real GDP will increase.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If the average price level decreases, what happens to the real output? A. It remains the same. B. It decreases. C. It increases. D. It has ...” in 📙 Advanced Placement (AP) if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A factor of production will NOT earn economic rent when its supply is: A: Elastic B: Inelastic C: Perfectly Elastic D: Perfectly Inelastic
Answers (1)
Is it possible for a person to be surrounded by evils and not be affected/influenced by them? Explain.
Answers (2)
What is one example of the government limiting individual rights to protect the rights of others? a) the government doesn't establish an official US religion b) the government says that people accused of crimes must be tried quickly c) the
Answers (2)
Convergence vs retinal disparity
Answers (1)
Sea and land breezes over a large region that change direction with the seasons are called what?
Answers (1)
New Questions in Advanced Placement (AP)
If the demand for bubble gum falls when people's income rises, then bubble gum is A) a normal good. B) an inferior good. C) a substitute good. D) a complementary good. E) a preferred good.
Answers (2)
He weights of 1,000 men in a certain town follow a normal distribution with a mean of 150 pounds and a standard deviation of 15 pounds.
Answers (2)
By the end of the Revolutionary War, Continental dollars were Question 14 options: very valuable. considered worthless. held in banks. were mostly gold.
Answers (2)
What is first level consumers?
Answers (1)
Question 3 of 10 Submit Submit Send a message Why is replication important? A) to find out if an experiment is valid B) so a scientist can tell others about an experiment C) so other scientists will know exactly how to do the experiment D) It is not
Answers (1)
Home » Advanced Placement (AP) » If the average price level decreases, what happens to the real output? A. It remains the same. B. It decreases. C. It increases. D. It has no impact from the price.
Sign Up Forgot Password?