Which of the Following Event(s) Most Likely Will Leave Prices

question 12

Multiple Choice

Which of the following event(s) most likely will leave prices relatively unchanged while increasing output?

• A)an increase in money supply combined with an income tax increase
• B)expansionary monetary policy in response to an adverse supply shock
• C)expansionary fiscal policy employed after a favorable supply shock
• D)restrictive monetary policy in response to an oil price decrease
• E)none of these

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Definitions:

Toward

In the direction of something or someone, indicating movement or orientation relative to a particular point or location.

Tenodynia

Pain in a tendon, often caused by overuse or inflammation.

Tendon

A tough band of fibrous connective tissue that usually connects muscle to bone and is capable of withstanding tension.

Pain

An unpleasant sensory and emotional experience associated with actual or potential tissue damage or described in terms of such damage.