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.

---

Definitions:

Interim Financial Statements

Periodic financial statements prepared during the fiscal year, providing an update on a company's financial position and performance between annual reports.

Voting Stock

Shares of a corporation's stock that entitle the shareholder to vote on company matters, such as electing directors.

Large Issuers

Refer to entities, often corporations or governments, that issue a significant volume of securities to finance their operations.