In the Short Run, If the Price Level Increases, Then

question 2

Multiple Choice

In the short run, if the price level increases, then nominal wages

• A)stay fixed and the firms' revenues and profits will increase.
• B)stay fixed and the firms' revenues and profits also stay the same.
• C)increase, causing the firms' revenues and profits to fall.
• D)decrease, causing the firms' revenues and profits to rise.

---

Definitions:

Industrialized Countries

Nations characterized by a significant level of industrialization, with a major portion of the economy based on manufacturing and services.

Democracy

A form of government in which power is held by the people, either directly or through elected representatives.

Postmaterialist Argument

This argument suggests that as societies become more economically developed, their citizens increasingly prioritize values such as environmentalism, equality, and personal freedom over material or economic concerns.

Liberal Democracies

Political systems characterized by free and fair elections, rule of law, protection of rights and freedoms, and the separation of powers.