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

question 86

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:

Development Costs

Expenses incurred in the creation, design, and implementation of new products, projects, or services, including research and development.

Net Benefits

The total positive effects or gains of a decision or action minus the total costs or negatives associated with it.

Effect Size

A quantitative measure describing the strength of a relationship between two variables.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean or average.