Which of the Following Would Cause Prices and Real GDP

question 64

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)an import tariff

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Definitions:

State

The organized system of power and authority in society.

Government

The system or group of people governing an organized community, often a state, and the mechanisms through which authority is exercised.

Relationship

A connection or association between two or more entities, which can be based on emotions, business, social roles, or other forms of interaction.

Power Elite

A theory by sociologist C. Wright Mills that suggests a small group of wealthy and influential individuals at the top of society hold the power and make the key decisions.