If the Expected Price Level Increases at the Same Time

question 79

Multiple Choice

If the expected price level increases at the same time that the federal government cuts taxes, in the short run

• A)aggregate output and the price level will both increase.
• B)aggregate output will increase, but the price level will fall.
• C)aggregate output and the price level will both fall.
• D)the price level will increase, but aggregate output may either increase or decrease.

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Definitions:

Public's Expectation

The anticipation or belief regarding a specific performance or behavior from an individual, organization, or product.

Authentic, Honest

Characteristics of being genuine and truthful in one's actions and communications.

Two-Way

A communication model that emphasizes interaction and feedback, facilitating dialogue between parties.

Company's Credibility

The perception of a company as trustworthy and reliable by its stakeholders, including customers, investors, and the general public.