Which of the Following Would Cause an Increase in the Price

question 29

Multiple Choice

Which of the following would cause an increase in the price level in the long run?

• A) The number of workers in the labor force increases.
• B) Net exports decrease.
• C) Investment increases.
• D) Natural resources increase.
• E) There is a temporary increase in the price of oil.

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Definitions:

Phi Coefficient

A measure of the degree of association between two binary variables, ranging from -1 to 1.

Coefficient of Determination

A statistical measure, often denoted as R^2, that represents the proportion of variance for a dependent variable that's explained by one or more independent variables.

Shared Variance

The portion of variance in a set of variables that is common across those variables, indicating the degree to which they are related.

Karl Pearson

A British mathematician and biometrician known for founding the discipline of mathematical statistics.