Figure 8-3
-According to Figure 8-3,the price level in the short run will be
A)115
B)110
C)100
D)Less than 100

Question

Figure 8-3 
-According to Figure 8-3,the price level in the short run will be
A)115 
B)110 
C)100 
D)Less than 100

Quizplus · Accepted Answer

Without access to Figure 8-3, the correct answer cannot be determined directly. However, in macroeconomics, short-run price levels can be influenced by aggregate demand and supply shifts. If the question implies an increase in aggregate demand or a decrease in short-run aggregate supply, the price level could rise above its current level. Assuming a starting price level of 100, an answer of 110 suggests a scenario where prices have increased, which could be plausible in a short-run analysis due to demand-pull inflation or cost-push inflation.

Figure 8-3 -According to Figure 8-3,the Price Level in the Short Run