Short Run Changes in the Price Level Can Affect Real

question 38

Multiple Choice

Short run changes in the price level can affect real output because

• A)supply curves of individual firms are upward sloping.
• B)higher prices encourage technological change.
• C)some production costs are relatively fixed.
• D)the labour force increases as wages increase.

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Definitions:

Nominal Group Session

A structured form of group meeting aiming to generate ideas or make decisions, where each member participates equally.

Round-Robin

A strategy or method involving a sequence or rotation where each participant takes part in an activity in turn.

Rank Order

A sequential arrangement of items, individuals, or values according to their level of importance, hierarchy, or superiority.

Groupthink

a psychological phenomenon where the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome.