What Impact Does a Sudden Increase in Input Prices Have

question 102

Multiple Choice

What impact does a sudden increase in input prices have on the price level and real output?

• A)The price level increases and real output decreases.
• B)The price level increases and real output increases.
• C)The price level decreases and real output increases.
• D)The price level decreases and real output decreases.

---

Definitions:

Monte Carlo

A computational algorithm that relies on repeated random sampling to obtain numerical results, often used in physical and mathematical problems.

Chance Behavior

Unpredictable actions or events that occur without a definitive pattern, often analyzed in probability and statistics.

Computerized Model

A digital simulation or representation of a real-world process, system, or concept designed to study its behavior and make predictions.

Mathematical Modeling

The process of creating a mathematical representation of a real-world situation or system to analyze and predict its behavior.