If the Expected Price Level Increases at the Same Time

question 79

Multiple Choice

If the expected price level increases at the same time that the federal government cuts taxes, in the short run

• A)aggregate output and the price level will both increase.
• B)aggregate output will increase, but the price level will fall.
• C)aggregate output and the price level will both fall.
• D)the price level will increase, but aggregate output may either increase or decrease.

---

Definitions:

Adulthood

The period of life when an individual is fully grown and has reached maturity, typically considered to begin at the age of 18 or 21.

Creative People

Individuals who have the ability to think outside the box and produce novel and valuable ideas or solutions.

Self-Starters

Describes individuals who are motivated and initiate tasks without the need for external encouragement or pressure.

Sense of Purpose

A feeling of having goals, direction, and meaning in life.