The Long-Run Effect of an Increase in Household Consumption Is

question 111

Multiple Choice

The long-run effect of an increase in household consumption is to raise

• A)both real output and the price level.
• B)real output and lower the price level.
• C)real output and leave the price level unchanged.
• D)the price level and leave real output unchanged.

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Definitions:

Monopolist

A monopolist is a market participant that has exclusive control over the market for a particular good or service, without any competition.

Vigorously On Price

An expression that may not accurately define a specific economic term but suggests active competition or negotiation around prices. NO.

Bargaining Power

The relative capacity of parties in a negotiation to exert influence over each other, often influencing the terms and conditions of agreements.

Dominant Firms

Companies that have a major share of the market sales or exert significant influence in their industry.