If the price level doubles,it will
A)increase potential GDP.
B)decrease potential GDP.
C)increase the quantity of money.
D)decrease the buying power of money.
E)have no effect on the buying power of money.

Question

Quizplus · Accepted Answer

If the price level doubles, each unit of currency will be able to purchase half of the goods and services it could before. This means the buying power of money has decreased.

If the Price Level Doubles,it Will