Which of the Following Would Increase the Price Level

Which of the following would cause both an increase in the price level and an increase in real output. C increased production results in lower production costs.

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Which of the following would increase the price level.

. Price level relative to the price level in other countries lowers net exports. A decrease in the natural rate of unemployment. E when the price level falls consumers increase their saving rate.

A higher price level reduces consumption investment and net exports d. In the most general sense and assuming ceteris paribus conditions an increase in aggregate demand corresponds with an increase in the price level. C A decrease in production costs.

Increases in the US. Right and an increase in the actual price level shifts short-run aggregate supply to the right. Which of the following best describes what happens when the price level falls.

Households decrease foreign bond purchases and the supply of dollars increases. Dollars become more valuable and interest rates fall. An increase in the money supply.

A decrease in the expected price. An increase in the price level real wealth which. Right and an increase in the actual price level does not shift short-run aggregate supply.

An increase in taxes. The basic difference between cost-push and demand-pull inflation lies in the rate at which the price level is rising C. Conversely a decrease in aggregate demand.

27Show and explain by using a graph what will happen to the price level and real GDP if the quantity of money increases and the increase is not anticipated. An increase in taxes. When the price level increases the real wealth will be lowered while consumption will decrease since people will not.

38Which of the following is consistent with an increase in the price level. Increases in the price level lower the interest rate and decrease consumption spending. D All of the above.

A An increase in the price level raises real wealth which causes consumption to increase. Households increase foreign bond purchases and the supply of dollars increases. That is the price level is not expected to change.

During a period of cost-push inflation the economys output will rise rapidly along with the price level B. B decreases in the price level cause increases in private-sector wealth which lead to increases in desired consumption. A higher price level increases consumption investment and net exports b.

Dollars become more valuable and interest rates rise. A higher price level reduces consumption investment and net exports c. Which of the following would increase the price level.

An increase in the expected price level shifts short-run aggregate supply to the a. Dollars become less valuable and interest rates rise. B An increase in transfer payments.

69 An increase in the price level results in an_____ in the quantity of real GDP demanded because _____ a. Increases in the price level raise real wealth and lowers consumption spending. D when the price level falls firms must be more competitive when output increases.

A A tax hike. Households increase foreign bond purchases and the supply of dollars decreases. During a period of demand-pull inflation the economys output will be stagnant when the price level is rising D.

B An increase in the price level decreases the amount of money a household needs to buy goods and raises the interest rate which causes consumption to increase. An increase in the money supply. C An increase in the price level increases the amount of money a household needs to buy goods.

27An increase in the price level ________ real wealth which causes consumption to ________. A decrease in the expected price level.

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