What Would Cause the Price Level to Rise and Output

question 90

Multiple Choice

What would cause the price level to rise and output to fall in the short run?

• A) an increase in the money supply
• B) a decrease in the money supply
• C) an adverse supply shock
• D) a favourable supply shock

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Definitions:

Percentiles

A measure that indicates the value below which a given percentage of observations in a group of observations falls.

Stanines

Derived from the term “standard nines,” this is a standardized score frequently used in schools. Often used with achievement tests, stanines have a mean of 5 and a standard deviation of 2, and range from 1 to 9.

T-scores

Standardized scores with a mean of 50 and a standard deviation of 10, used to compare an individual's score against a normative sample.

Grade Equivalents

A metric used in education to compare a student's test score with the average scores of students in other grades.