If the Price Level Increases More Rapidly Than Expected,_____

question 85

Multiple Choice

If the price level increases more rapidly than expected,_____.

• A)output will decrease
• B)output will increase
• C)output will not change
• D)real wages will increase
• E)unemployment will increase

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Definitions:

Increase in Income

A rise in the amount of money received, especially by a business or individual, over a certain period.

Variable Cost

A cost that varies with the level of output or production volume, such as materials and labor.

Transfer Price

The price at which goods or services are sold between divisions within the same company or between affiliated companies.

Minimum Return

The least amount of profit or yield expected from an investment, project, or venture to consider it desirable or viable.