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
1. Jaka jest różnica pomiędzy wulkanizacja gumy siarkowa i bezsiarkową. 2. Jaka jest różnica pomiędzy stalą stopowa według polskich norm i według europejskich norm. 3. Jaka jest różnica pomiędzy materiałami uszczelniającymi i izolacyjnymi. 4.
Answers (1)
Name two areas of technology not usaully described in business?
Answers (1)
Using your knowledge of how federalism affects policy making, develop an argument on whether the federal government's role in education should be expanded.
Answers (1)
What is the capital of nicaragua
Answers (2)
For a study to accurately reflect a target population behavior, it must use A both reliable and valid B. only reliable C. only valid D. neither reliable nor valid
Answers (1)
New Questions in Advanced Placement (AP)
what substance aids the speed of a neuron transmission enabling toddlers to preform more complex tasks
Answers (1)
Who will be the king after queen of England dies?
Answers (1)
AP Psychology* Describe the important tenets of unconditional positive regard, according to Carl Rogers.
Answers (1)
Which of the following is the school of thought that stresses the importance of unconscious motives and internal conflicts in determining human behavior? A. Gestalt psychology B. psychoanalytic theory C. structuralism D. behaviorism
Answers (1)
What is a difference between conduction and convection?
Answers (2)
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?