In the Short Run, a Price Increase in the Goods

question 57

Multiple Choice

In the short run, a price increase in the goods and services market measured by the CPI will:

• A) increase the purchasing power of money.
• B) improve producer profits and, thereby, induce suppliers to expand output.
• C) increase resource prices, lower profits, and lead to a decline in output.
• D) reduce the natural rate of unemployment.

---

Definitions:

Charge

A fee or cost for a service rendered or a penalty for a wrongdoing.

Voice-Activated

Technology that allows devices or software to be controlled through spoken commands, facilitating hands-free operation.

Thought-Activated

Technology or systems controlled by human thought, without the need for physical interactions.

Expect

To regard something as likely to happen based on available evidence or logical supposition.