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:

Progressivism

A political and social philosophy advocating for reform and improvement through governmental action.

Theodore Roosevelt

The 26th President of the United States, known for his progressive policies, leadership of the Rough Riders, and contributions to conservation.

Tulsa, Oklahoma

Known for the Tulsa Race Massacre of 1921, where a white mob attacked residents, homes, and businesses in the predominantly African American neighborhood of Greenwood, leading to significant loss of life and property.

Race War

A conflict between racial or ethnic groups characterized by violence and hostility, often fueled by racism, discrimination, and historical grievances.