Other Things Constant, an Increase in Resource Prices Will

question 86

Multiple Choice

Other things constant, an increase in resource prices will

• A) increase the demand for goods and services.
• B) increase the cost of producing goods and services, which will lead to a higher price level.
• C) reduce costs and improve profit margins, which will lead to an increase in aggregate supply in the goods and services market.
• D) cause the natural rate of unemployment to rise.

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