We Observe an Increase in the Price Level and an Increase

question 65

Multiple Choice

We observe an increase in the price level and an increase in real GDP. Which of the following is a possible explanation?

• A)a decrease in the quantity of money
• B)a decrease in expected future income
• C)an increase in factor prices
• D)an increase in the quantity of capital
• E)an increase in expected future profits

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Definitions:

Cephalic

Relating to the head or the head end of the body.

Caudal

Relating to the tail or posterior part of the body.

Axillary Border

The edge of the scapula closest to the armpit, significant in anatomy for muscle attachment.

Infraspinatus

A thick triangular muscle located on the back of the shoulder blade (scapula) which is responsible for the lateral rotation of the arm at the shoulder.