Consumption spending is _______ the overall price level.
A) negatively related to
B) positively related to
C) equal to
D) not correlated with

Question

Quizplus · Accepted Answer

Consumption spending is negatively related to the overall price level because as prices increase, the purchasing power of consumers decreases, leading to a reduction in the amount of goods and services they can buy. This relationship is a fundamental concept in economics, reflecting the inverse relationship between price levels and consumer demand.

Consumption Spending Is _______ the Overall Price Level