Which Set of Changes Is Definitely Predicted to Raise the Price

question 124

Multiple Choice

Which set of changes is definitely predicted to raise the price level in the short run?

• A) The money supply falls and wage rates rise.
• B) The money supply falls and wage rates fall.
• C) The money supply rises and wage rates fall.
• D) Labor productivity rises and there is a beneficial supply shock.
• E) The prices of nonlabor inputs rise and individuals expect higher (future)incomes.

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