An Increase in the Price Level and a Reduction in Output

question 32

Multiple Choice

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

• A)a fall in stock prices.
• B)a decrease in the supply of an important resource.
• C)an increase in government expenditures.
• D)an increase in taxes.

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Definitions:

Judicial Restraint

The principle that judges should limit their own power to strike down laws unless they clearly violate the Constitution.

Elected Officials

Individuals chosen through a voting process to hold public office and represent the electorate in legislative, executive, or judicial capacities.

Judicial Activism

The practice by judges of using their powers to make broad interpretations of laws or the Constitution, often leading to changes in public policy or new legal principles.

Independent Commissions

Bodies established to carry out administrative functions or investigations free from political influence.