Which of the Following Would Cause the Price Level to Rise

question 36

Multiple Choice

Which of the following 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 favorable supply shock

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Definitions:

Olive Growers

Individuals or entities involved in the cultivation of olive trees and the production of olives for consumption or the extraction of olive oil.

United States

A federal republic consisting of 50 states, a federal district, five major self-governing territories, and various possessions.

Absolute Advantage

The ability of an individual, company, or country to produce a good or provide a service more efficiently than competitors, using the same amount of resources.

Economic Basis

refers to the foundational activities, sectors, or resources upon which an economy is built and sustains its growth.