An Increase in the Price Level and a Reduction in Output

question 31

Multiple Choice

An increase in the price level and a reduction in output would result from

• A)an increase in the money supply.
• B)an increase in government expenditures.
• C)a fall in stock prices.
• D)bad weather in farm states.

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Definitions:

Constitutionality

The quality or condition of being in accordance with the constitution of a country or organization.

Appellate Review

The process by which higher courts review and potentially reverse the decisions or actions taken by lower courts.

Federal Judges

Jurists appointed to preside over courts established by the federal government.

Impeached

The process by which a public official is accused of unlawful activity, possibly leading to the removal from office depending on the outcome of a trial.