Which of the following is true of a lower price level?
A) The lower the price level, any given money wage purchases less, so the wage is less attractive to workers.
B) The lower the price level, any given money wage purchases more, so the wage is more attractive to workers.
C) The lower the price level, any given money wage purchases more, so the wage is less attractive to workers.
D) The lower the price level, any given money wage purchases less, so the wage is more attractive to workers.
E) There is no relationship between the price level and money wages.

Question

Quizplus · Accepted Answer

A lower price level means prices of goods and services have decreased. Therefore, any given money wage can purchase more goods and services, making the wage more attractive to workers.

Which of the Following Is True of a Lower Price