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

question 13

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.

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Definitions:

Rational Expression

A ratio of two polynomial expressions, with a non-zero denominator.

Simplify

To reduce an expression or equation to its simplest form by performing all possible operations and combining like terms.

Shaded Portion

The part of a diagram or graph that is marked with a pattern or color to indicate it is different from the rest, often related to probability, geometry, or statistics.

Total Area

The entire surface area of a two-dimensional shape or the combined surface areas of all faces of a three-dimensional object.