All of the following will raise the price level except
A)aggregate demand increases and short- run aggregate supply decreases.
B)an increase in the quantity of money.
C)aggregate demand increases.
D)short- run aggregate supply decreases.
E)an increase in the quantity of capital.

Question

Quizplus · Accepted Answer

An increase in the quantity of capital would lead to an increase in the long-run aggregate supply, which would lower prices, not raise them.

All of the Following Will Raise the Price Level Except