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Eduardwww [97]
3 years ago
7

If the average price level decreases,

Advanced Placement (AP)
1 answer:
Alex787 [66]3 years ago
7 0

Answer:

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.

Explanation:

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