If Profits Are High Because the Price Level Rose

question 30

Multiple Choice

If profits are high because the price level rose,

• A)it is likely the result of an increase in the real wage rate.
• B)new businesses open and the quantity of real GDP supplied increases.
• C)business failures rise and the quantity of real GDP supplied increases.
• D)potential GDP must be decreasing.
• E)the AS curve shifts leftward.

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Definitions:

Energy And Water

Essential resources for business operations, often targeted for conservation efforts to reduce costs and support sustainability.

Greenhouse Gases

Gases in Earth's atmosphere that trap heat, contributing to global warming and climate change.

Corporate Social Responsibility

A business model that integrates self-regulatory mechanisms into a company's operations, ensuring its activities align with societal, environmental, and ethical standards.

Transportation Costs

Expenses associated with the movement of goods or materials from one location to another.