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:

Entirely Positive

A term that could suggest a situation or value is purely positive, without any negative parts or aspects. NO.

Interval

A range of numbers between two set points.

Real Number Line

A one-dimensional line on which every point corresponds to a real number and every real number to a point.

Real Number Line

A line that graphically represents all possible real numbers, where each point on the line corresponds to a unique real number.