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:

Economist

A professional who studies the production, distribution, and consumption of goods and services, often analyzing economic issues and trends.

Scarcity of Time

A situation where the amount of time available is insufficient to meet demands or complete tasks.

Hamburger

A popular food item consisting of a cooked patty of ground meat, typically beef, placed inside a sliced bun.

Unlimited Wants

The economic principle that humans have infinite desires or wants but limited resources to fulfill them.