Which of the Following Would Cause the Price Level to Fall

question 15

Multiple Choice

Which of the following would cause the price level to fall and output to rise in the short run?

• A)an increase in the money supply
• B)a decrease in the money supply
• C)an adverse supply shock
• D)a favorable supply shock

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Definitions:

Decision-Making Process

The cognitive process of selecting a course of action from among multiple alternatives, often involving a structured methodology.

Departmentalization

The organizational practice of dividing a business into specialized functional areas or departments to improve efficiency.

Span of Control

It refers to the number of subordinates that a manager or supervisor can directly control.

First-Line Managers

Managers at the lowest level of an organization who directly supervise and support the work of non-managerial employees.