What Could Create an Increase in the Price Level and a Decrease

question 240

Multiple Choice

What could create an increase in the price level and a decrease in real GDP in the short run?

• A) an increase in the money supply
• B) an increase in government expenditures
• C) a fall in stock prices
• D) bad weather in agriculture producing provinces

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Definitions:

Radical Republicans

Group within the Republican Party in the 1850s and 1860s that advocated strong resistance to the expansion of slavery, opposition to compromise with the South in the secession crisis of 1860–1861, emancipation and arming of black soldiers during the Civil War, and equal civil and political rights for blacks during Reconstruction.

Equal Rights

The principle that all people should have the same rights and opportunities without discrimination.

Thaddeus Stevens

A nineteenth-century U.S. politician and fierce advocate for the abolition of slavery and leader in the effort to implement Reconstruction policies aimed at securing rights for freed slaves.

Civil Rights Bill

The Civil Rights Bill usually refers to legislation aimed at enforcing or furthering civil rights, such as the U.S. Civil Rights Act of 1964 which outlawed discrimination based on race, color, religion, sex, or national origin.