Which of the Following Would Cause Prices and Real GDP

question 82

Multiple Choice

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

• A)an increase in the expected price level
• B)an increase in the money supply
• C)a decrease in the capital stock
• D)None of the above is correct.

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Definitions:

Lowest Level

The minimum or most basic level of something, often referring to the foundation or starting point.

Minimum Wage Laws

Legislation that establishes the lowest amount that can be paid to workers for their labor.

Labor Market

A marketplace where employers find workers and workers find jobs; it involves the supply and demand for labor.

Unemployment

The condition of being without a job, despite actively seeking work, often measured as a percentage of the labor force.