If the Price Level Should Increase in the near Term

question 158

Multiple Choice

If the price level should increase in the near term due to decreases in the short-run aggregate supply, the result would be

• A) demand-pull inflation.
• B) demand-pull recession.
• C) cost-push inflation.
• D) cost-pull expansion.

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Definitions:

Natural Environment

The physical, chemical, and biological conditions that exist in an area, not influenced or altered by human activity.

"Survival of the Fittest"

A phrase often associated with natural selection, describing the process by which organisms better adapted to their environment tend to survive and produce more offspring.

Self-Awareness

The act of knowing one's own identity, emotions, reasons behind actions, and desires.

Ingroup

A group to which an individual belongs and identifies with, often leading to an "us" versus "them" mentality.