The Economy Experiences an Increase in the Price Level and a Decrease

question 246

Multiple Choice

The economy experiences an increase in the price level and a decrease in real domestic output. Which of the following is a likely explanation?

• A) Productivity has increased.
• B) Input prices have increased.
• C) There has been an increase in government spending.
• D) Government regulations have been reduced.

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Definitions:

Bankruptcy and Insolvency Act

A federal statute that governs the processes for the bankruptcy and insolvency of individuals and businesses in Canada.

Builder's Lien Act

Legislation that allows contractors and suppliers to place a lien on a property as security for payment for services rendered or materials supplied.

Lien Claim

A right granted by law to a creditor over the property of a debtor as security for the debt.

Bulk Sales Acts

Laws designed to protect creditors by regulating the bulk transfer of business assets outside the regular course of business.