What Could Create a Decrease in the Price Level and a Reduction

question 225

Multiple Choice

What could create a decrease in the price level and a reduction in real GDP?

• A) an increase in interest rates
• B) a war in the Middle East
• C) declining immigration
• D) tax rebates

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Definitions:

Domestic Industries

Industries that produce goods and services within a country's borders for local consumption.

Prevent Dumping

Strategies or policies implemented to protect a country's domestic industry by limiting the importation of cheaply priced foreign goods.

Foreign Licensing

A business practice where a company allows another business in a different country to produce and sell its products under its brand.

International Production

Creating goods in multiple countries around the globe, often to minimize costs or maximize quality.