In the Short Run, a Price Increase in the Goods

question 120

Multiple Choice

In the short run, a price increase in the goods and services market 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.

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Definitions:

Work Outcome

The result or output of professional activities, which can be measured in terms of quality, quantity, and efficiency.

Profit Sharing

Rewards employees in some proportion to changes in organizational profits.

Productivity Gains

Refers to the increase in the output of goods or services compared with the input of resources used, enhancing efficiency.

Enhanced Earnings

Improved or increased income from investments, work, or business operations.