Which of the Following Would Cause Both an Increase in the Price

question 116

Multiple Choice

Which of the following would cause both an increase in the price level and an increase in real output?

• A)A tax hike.
• B)A decrease in production costs.
• C)An increase in transfer payments.
• D)A decrease in government spending.

---

Definitions:

Ear Plugs

Small devices inserted into the ear canal to protect the ears from loud noises, water, foreign bodies, or excessive wind.

Sensory Responses

The physiological reactions of sensory organs or nerves to external stimuli.

Blood Sugar

The concentration of glucose present in the blood, crucial for energy supply to cells and maintaining metabolic homeostasis.

Anti-hypertensive Medication

Drugs used to manage high blood pressure, aiming to prevent complications such as stroke and heart attack.