BuyFind

Principles of Macroeconomics (Mind...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305971509
BuyFind

Principles of Macroeconomics (Mind...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305971509

Solutions

Chapter
Section
Chapter 17, Problem 1QR
Textbook Problem
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Explain how an increase in the price level affects the real value of money.

Expert Solution
To determine
The level of price and the value of money.

Explanation of Solution

A rise in the price level lowers the real value of money. This is because people will have to pay more to the goods and services they buy or in other terms each dollar now buys a smaller quantity of goods and services.

Economics Concept Introduction

Concept Introduction:

Inflation: Inflation is an increase in the general price level of goods and services in an economy over a period.

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Chapter 17 Solutions

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