A higher price level leads to

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A higher price level decreases the purchasing power of money, leading to lower real wealth for consumers. This can lead to a decrease in consumer spending and a lower aggregate demand. Higher prices also make it more expensive for individuals and firms to borrow money, leading to higher levels of debt. A higher price level does not necessarily lead to a higher consumption function, as consumer behavior depends on various factors beyond just price levels.

A Higher Price Level Leads to