In the Short Run, an Increase in the Price Level

question 149

Multiple Choice

In the short run, an increase in the price level induces firms to expand production because

• A) prices of inputs are held constant, so the higher prices for firms' products imply that it is profitable to expand production.
• B) each firm must keep its production level up to the level of its rivals, and some firms will expand production as the price level increases.
• C) higher prices allow firms to hire more inputs by offering higher prices for inputs, which increases productivity and profits.
• D) they can increase profits by increasing maintenance costs.

---

Definitions:

Civically Engaged

Refers to individuals actively participating in the civic life of their community through informed, committed, and constructive actions to address public issues.

Black Nationalism

A political and social movement seeking to promote, develop, and maintain a black race identity and to achieve self-determination and sovereignty for black people.

Malcolm X

An African American Muslim minister, public speaker, and human rights activist who advocated for the rights of blacks, often by any means necessary.

United Negro Improvement Association (UNIA)

A black nationalist fraternal organization founded by Marcus Garvey, aimed at promoting African American economic independence and fostering a sense of African pride.