Final answer:
Outlawing yellow-dog contracts during Herbert Hoover's administration caused the equilibrium price level to rise and the output to decrease.
Step-by-step explanation:
The outlawing of yellow-dog contracts during Herbert Hoover's administration led to a rise in the equilibrium price level and a decrease in output. Yellow-dog contracts were agreements that prevented workers from joining labor unions. When these contracts were outlawed, workers gained more bargaining power, resulting in higher wages and increased demand for goods and services. However, this also led to a decrease in the overall production of goods, as businesses faced higher labor costs.