Other Things Equal, an Increase in Input Prices Will

question 387

Multiple Choice

Other things equal, an increase in input prices will

• A) reduce aggregate supply and reduce real output.
• B) increase the interest rate and lower the international value of the dollar.
• C) increase aggregate supply and increase the price level.
• D) increase net exports, increase investment, and reduce aggregate demand.

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Definitions:

Ohmmeter

A device used to measure electrical resistance within a circuit.

Permanent Magnet Motor

An electric motor that uses permanent magnets instead of electromagnets as the field coils. They draw less power than motors with electromagnetic field coils and can be made smaller as a result.

Power Door Locks

An electrically controlled system that locks and unlocks the doors of a vehicle, offering convenience and increased security.

Digital Multimeter

A handheld electrical testing device that can measure AC and DC voltage, resistance, amps, and other measurements.