An Increase in the Price Level Due to an Increase

question 106

Multiple Choice

An increase in the price level due to an increase in the price of oil

• A)creates stagflation in the short-run and will trigger a cost-push inflation.
• B)creates stagflation in the short-run and may trigger off a cost-push inflation.
• C)increases output above potential GDP.
• D)leads to an increase in the money wage rate.
• E)leads to a decrease in the money wage rate.

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Definitions:

T score

A standardized type of z-score that typically has a mean of 50 and a standard deviation of 10, used for comparing individual scores.

Normal Curve

A bell-shaped curve that represents the distribution of many types of data where most occurrences take place in the middle of the distribution.

Standard Deviation

Standard deviation is a measure of the amount of variation or dispersion in a set of values, indicating how much the values in a dataset deviate from the mean.

Raw Scores

The initial, unadjusted scores obtained directly from a test or assessment.