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.

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Definitions:

Channel Members

Individuals or entities that are involved in the process of moving goods or services from producers to consumers within the supply chain.

Manufacturer

A business that produces goods in large numbers using machinery.

Stocking the Product

The process of keeping a product available in inventory for sale to customers.

Prescription Drugs

Medications that can only be obtained with a written order from a doctor or other authorized healthcare professional.