The Economy Experiences an Increase in the Price Level and a Decrease

question 119

Multiple Choice

The economy experiences an increase in the price level and a decrease in real domestic output.Which is a likely explanation?

• A)productivity has increased
• B)input prices have increased
• C)excess capacity has decreased
• D)government regulations have been reduced

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Definitions:

Molasses

A thick, dark syrup produced during the refining of sugar or from the fermentation of starch, used as a sweetener or in alcohol production.

Intermediate Products

Goods that are produced by one business for use in further production processes by another business.

Sugar Cane

A tropical grass plant used primarily for its sucrose content, from which sugar is extracted.

Industrial Fiber

A type of fiber used in manufacturing processes, typically characterized by high strength and durability suitable for industrial applications.