Employing the "Keyneisan" approach (legacy model), according to the wealth effect, an increase in the price level (i. e. inflation) real wealth and consumption expenditure.

Employing the "Keyneisan" approach (legacy model), according to the wealth effect, an increase in the price level (i.e. inflation) decreases real wealth and decreases consumption expenditure.

Explanation:

Employing the "Keyneisan" approach (legacy model), according to the wealth effect, an increase in the price level (i.e. inflation) decreases real wealth and decreases consumption expenditure.When there is a lower inflation rate, it causes the real interest rate to fall and stimulates the investment.Keynesian economics is a theory of total spending in the economy which is also called as aggregate demand.The theory also affects on the output production and inflation.He also believed that unemployment is subject to the unpredictable change of aggregate demand and partly because they believe that prices adjust only gradually.

Answer:

the correct answer is economics is a game without winners or losers.

explanation:

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

$1,240 is the answer! ~ hope i !