Multiple Choice
Other things being equal,what is the effect of an exogenous rise in the domestic price level? There will be
A) no effect on the level of desired real expenditure.
B) an increase in the level of desired real expenditure.
C) a decrease in desired real expenditure only if it is accompanied by a change in the current income of households.
D) a decrease in desired real expenditure because it will affect the real value of wealth.
E) an increase in net exports.
Correct Answer:

Verified
Correct Answer:
Verified
Q77: Which of the following could cause the
Q78: Consider a simple macro model with demand-determined
Q79: When the economy's AS curve is positively
Q80: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7713/.jpg" alt=" FIGURE 23-5 Refer
Q81: Which of the following will cause a
Q83: Consider the following news headline: "World commodity
Q84: Consider the basic AD/AS model with an
Q85: Consider the basic AD/AS model.A rise in
Q86: Which of the following is implied by
Q87: Aggregate supply refers to the<br>A)decisions of firms