If the Price of a Good Increases

question 54

Multiple Choice

If the price of a good increases:

• A) The quantity supplied of the good will increase
• B) The supply of the good will increase
• C) The quantity supplied of the good will decrease
• D) The supply of the good will decrease

---

Definitions:

Monetarist Economists

Economists who believe that the variation in the money supply has major influences on national output in the short run and the price level over longer periods.

Monetary Policy

The process by which the central bank of a country controls the money supply, often targeting an inflation rate or interest rate to ensure economic stability.

Policymakers

Individuals or groups responsible for making decisions and laws that influence a nation's economy, society, and overall governance.

Rational Expectations

The hypothesis that individuals and firms use all available information to make economic decisions and forecasts, impacting market outcomes.