What Would Cause the Price Level to Rise and Output

question 90

Multiple Choice

What 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

---

Definitions:

Stereotypes

Oversimplified, generalized beliefs or perceptions about the characteristics, attributes, or behaviors of a particular group or category of people.

Scarce Resources

Resources that are limited in availability and cannot meet all the wants and needs of those who desire them.

Task Interdependence

This refers to the degree to which the work of one individual or department relies on the work of another.

Conflict Source

The origin or cause of a disagreement or opposition between parties.