In the Short Run, an Increase in the Price of a Major

question 72

Multiple Choice

In the short run, an increase in the price of a major input such as oil will:

• A) decrease both the price level and the level of output.
• B) decrease the price level and increase the level of output.
• C) increase the price level and decrease the level of output.
• D) increase the price level and increase the level of output.

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Definitions:

Megabyte

A unit of digital information storage or transmission comprised of approximately one million bytes (1,000 kilobytes or 1,024 kilobytes in binary).

Petabyte

A unit of information or computer storage equal to one quadrillion bytes or 1,024 terabytes, commonly used to measure data capacity on a large scale.

Terabyte

A unit of digital data storage equal to approximately 1 trillion bytes or 1024 gigabytes, often used to measure hard drive or memory capacity.

Binary Digit

Also known as a "bit," it is the smallest unit of data in computing, representing two possible values: 0 or 1.