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:

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