Which of the Following Would Cause the Price Level to Rise

question 131

Multiple Choice

Which of the following would cause the price level to rise and output to fall 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 favourable supply shock

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Definitions:

Localization of Function

The concept that specific parts of the brain are responsible for specific psychological or physiological functions.

Phrenology

A now-discredited theory that suggested the shape and size of the skull could determine a person's personality and mental abilities.

Joseph Gall

An early 19th-century neuroanatomist and physiologist known for developing phrenology, the study of skull shapes to determine mental faculties.

Lesion Method

A research technique involving the study of the effects of brain damage on behavior and mental processes.