A rise in the price level has a direct effect on spending because
A) the real value of the money people have decreases and they can buy less with it.
B) a higher price gives people more money, and so the more goods and services they can buy.
C) the real value of the money people have varies directly with the price level.
D) people like to spend more when prices are higher.
A
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The business cycle ________ on Delta Airlines since the company's inception over 80 years ago
A) has always had a negative effect B) has had virtually no effect C) has always had a positive effect D) has had a large effect
According to aggregate demand and supply analysis, the negative supply shocks of 1973-1975 and 1978-1980 had the effect of
A) increasing aggregate output, lowering unemployment, and raising the inflation. B) decreasing aggregate output, raising unemployment, and raising the inflation. C) increasing aggregate output, raising unemployment, and raising the inflation. D) decreasing aggregate output, raising unemployment, and lowering the inflation.