A Decrease in Aggregate Supply Will Cause the Price Level

question 81

Multiple Choice

A decrease in aggregate supply will cause the price level to:

• A) rise and GDP to fall.
• B) rise and GDP to rise.
• C) rise and the unemployment rate to fall.
• D) fall and GDP to rise.
• E) fall and the unemployment rate to rise.

---

Definitions:

Innominate Bone

Another term for the hip bone, which is formed by the fusion of the ilium, ischium, and pubis bones.

Ischium

One of the three bones that make up the pelvis, located in the lower part of the pelvis.

Ilium

The large, broad bone forming the upper part of each half of the pelvis.

Sacrum

A large, triangular bone at the base of the spine, formed by the fusion of vertebrae, and situated between the two hip bones.