What Could Cause a Decrease in the Price Level and Simultaneously

question 59

Multiple Choice

What could cause a decrease in the price level and simultaneously an increase in GDP similar to the 1920s in the United States?

• A) an increase in interest rates
• B) a decrease in consumer confidence
• C) an increase in productivity
• D) a decrease in interest rates

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Definitions:

Lipogenesis

The metabolic process by which acetyl-CoA is converted to triglycerides for storage in fat.

Glycogenesis

Formation of glycogen from glucose molecules.

Gluconeogenesis

Formation of glucose from noncarbohydrates, such as proteins (amino acids) or lipids (glycerol).

Theory Of The Firm

Explanation of how a firm makes cost-minimizing production decisions and how its cost varies with its output.