Which of the Following Would Cause Prices and Real GDP

question 82

Multiple Choice

Which of the following would cause prices and real GDP to rise in the short run?

• A)an increase in the expected price level
• B)an increase in the money supply
• C)a decrease in the capital stock
• D)None of the above is correct.

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Definitions:

Socialist Economies

Economic systems where the production and distribution of goods and services are controlled by the government with an aim towards equal distribution of wealth.

The United States

The United States is a federal republic consisting of 50 states, a federal district, five major self-governing territories, and various possessions, known for its significant influence on global politics, economy, and culture.

Norway

A Scandinavian country known for its vast landscapes, fjords, and high living standards.

Karl Marx

A 19th-century philosopher, economist, and political theorist known for his critical theories about capitalism and his influence on the development of socialist and communist movements.