What Would Cause Prices and Real GDP to Rise in the Short

question 234

Multiple Choice

What 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:

Corn Crop Yield

The total production of corn measured in units (such as bushels per acre) harvested from a given area.

Complements

Products or services that complement each other, such that a rise in the demand for one results in a rise in the demand for its counterpart.

Price of Yogurt

The amount of money required to purchase a unit or quantity of yogurt in the market.

Equilibrium Price

The cost point where the amount of a product or service that buyers want matches the amount that sellers offer, leading to equilibrium in the market.