Which of the Following Would Cause Prices to Rise and Real

question 10

Multiple Choice

Which of the following would cause prices to rise and real GDP to fall in the short run?

• A)an increase in the expected price level
• B)an increase in the capital stock
• C)an increase in the quantity of labour available
• D)an increase in money supply

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Definitions:

Current Liabilities

Debts or obligations that are due to be paid within one year or within the normal operating cycle of the business, whichever is longer.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Rate of Return on Investment

A measure of the profitability and efficiency of an investment, calculated by dividing the investment's gain by its cost.

Owners' Equity

refers to the owner's interest in the assets of a business after all liabilities have been deducted.