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

question 46

Multiple Choice

In the long run, if the price level increases, then nominal wages and other input prices will

• A)also rise, so firms will reduce their output level.
• B)also rise, so firms will not change their output level.
• C)not change, so firms will not change their output level.
• D)decrease, so firms will increase their output level.

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Definitions:

Varicella

A highly contagious viral disease, also known as chickenpox, marked by a widespread itchy rash.

Vitiligo

A skin condition characterized by patches of skin losing their pigment, resulting in irregular white spots.

Miliaria

A skin condition, often referred to as heat rash, characterized by small, itchy bumps caused by blocked sweat ducts during hot and humid conditions.

Impetigo

A highly contagious bacterial skin infection, characterized by red sores, blistering, and a honey-colored crust.