An Increase in the General Price Level Will Lead to

question 33

Multiple Choice

An increase in the general price level will lead to

• A) an upward movement along the short-run aggregate supply curve as firms increase output.
• B) a rightward shift of the short-run aggregate supply curve as firms increase output.
• C) a downward movement along the short-run aggregate supply curve as firms decrease output.
• D) a leftward shift of the short-run aggregate supply curve as firms decrease output.
• E) no change in output because input prices are sticky.

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Definitions:

Edmund Burke

An Irish statesman, author, orator, political theorist, and philosopher, known for his support of the American Revolution and as a founder of conservative political theory.

King George III

Monarch of Great Britain and Ireland from 1760 until 1820, whose reign included the American Revolution and the early stages of the Napoleonic Wars.

Predecessors

Individuals or entities that preceded others in a particular position, office, or situation, often setting precedents or foundations for those who follow.

Seven Years' War

A global conflict fought between 1756 and 1763 that involved most of the great powers of the time and affected Europe, North America, Central America, West Africa, India, and the Philippines.