In the Short Run,what Will an Increase in the Price

question 75

Multiple Choice

In the short run,what will an increase in the price level result in?

• A)an increase in the natural rate of output
• B)an increase in the profit margins of many producers
• C)an increase in output prices relative to input prices
• D)an increase in unemployment rates

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Definitions:

Compounded Semiannually

A method where interest payments are made on an investment or loan twice each year, leading to interest being earned on previously earned interest.

Annually Compounded

Pertaining to interest on investment or loans that is calculated once a year, adding to the sum each year.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, often used as an indicator of inflation.

Real Rate Of Return

The annual percentage profit earned on an investment, adjusted for changes in the price level due to inflation.