The Short-Run Effect of a Sudden Increase in Stock Prices

question 49

Multiple Choice

The short-run effect of a sudden increase in stock prices will be

• A) an increase in output and a decrease in prices.
• B) an increase in both output and prices.
• C) a decrease in both output and prices.
• D) a decrease in output and an increase in prices.

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Definitions:

Stethoscope

A medical instrument used for listening to sounds produced within the body, such as the heart and lungs.

Temporal Artery Thermometers

A device used to measure body temperature by detecting the heat emitted by the temporal artery on the forehead.

Chemical Thermometer

A device measuring temperature based on the chemical reaction within it, providing thermal readings.

Mercury Thermometers

Temperature measuring devices that use mercury encased in glass to indicate the temperature based on mercury expansion.