What Would Cause the Price Level to Rise and Output

question 90

Multiple Choice

What would cause the price level to rise and output to fall in the short run?

• A) an increase in the money supply
• B) a decrease in the money supply
• C) an adverse supply shock
• D) a favourable supply shock

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Definitions:

Bank's Obligation

The responsibilities and duties a bank owes to its customers, such as safeguarding deposits and honoring withdrawals.

Authorization

The formal permission or power granted to do something or to validate a transaction.

Cashier's Check

A check issued by a bank, drawn on its own funds rather than that of an individual account holder, offering a secure way of payment.

Certified Check

A check for which the issuing bank guarantees the availability of funds by verifying the account balance and then setting aside the check amount for payment.