The Economy Experiences an Increase in the Price Level and a Decrease

question 246

Multiple Choice

The economy experiences an increase in the price level and a decrease in real domestic output. Which of the following is a likely explanation?

• A) Productivity has increased.
• B) Input prices have increased.
• C) There has been an increase in government spending.
• D) Government regulations have been reduced.

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Definitions:

Textbook Selection

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Paradox of Voting

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