An Increase in the Price Level Due to an Increase

question 36

Multiple Choice

An increase in the price level due to an increase in the price of oil

• A)leads to an increase in the money wage rate.
• B)increases output above potential GDP.
• C)creates stagflation in the short- run and will trigger a cost- push inflation.
• D)creates stagflation in the short- run and may trigger a cost- push inflation.
• E)leads to a decrease in the money wage rate.

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Definitions:

Authoritarian

A child-rearing style in which parents demand submission and obedience.

Monthly Allowance

A fixed amount of money given regularly, often on a monthly basis, for expenses or personal use, typically provided to children or dependents.

Physical Discipline

A method of correcting or controlling behavior by applying a physical force or action, typically involving spanking or hitting.

Warm Parents

Parents who exhibit affection, responsiveness, and supportive behaviors towards their children, fostering a positive and secure attachment.