An Increase in the Price Level and a Decrease in Real

question 103

Multiple Choice

An increase in the price level and a decrease in real GDP in the short run could be created by

• A)an increase in the money supply.
• B)an increase in government expenditures.
• C)a fall in stock prices.
• D)bad weather in farm states.

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Definitions:

ADH

Antidiuretic Hormone, a hormone secreted by the pituitary gland that regulates the balance of water in the body by reducing the amount of water excreted in the urine.

Addison Disease

A disorder characterized by insufficient production of cortisol and sometimes aldosterone by the adrenal glands, leading to fatigue, muscle weakness, and other symptoms.

Aldosterone

A hormone produced by the adrenal glands that helps regulate blood pressure by controlling sodium and water balance in the body.

Cortisol

A steroid hormone produced by the adrenal glands, involved in the body's stress response, metabolism, and immune response.