In the long run, an increase in the price level:
a. increases output prices relative to input prices.
b. increases the profit margins of many producers.
c. increases RGDP supplied
d. Does none of the above.
d
You might also like to view...
If the demand for dog grooming increases so that the price of dog grooming rises, then number of workers hired by Doug's Dog Grooming would
A) decrease. B) increase. C) remain unchanged. D) Any of the above answers are possible.
If the farm adopted a new technology, which allows it to use fewer resources to fatten chickens, explain how the farm's production possibilities will change. Explain how the opportunity cost of producing a bushel of soybean will be affected
What will be an ideal response?
What is the term that explains why voters often lack knowledge of pending legislation, and lack knowledge of the views of candidates for office on a range of issues that affect their own (the voters') welfare?
A) rational ignorance B) regulatory capture C) the voting paradox D) logrolling
LISA BETH Mustard Company undertakes an advertising campaign and finds that within the industry's relevant price range, the price elasticity of demand for its own mustard fell from 3.5 to 0.94 . As a result, we would expect that LISA BETH
a. would raise its price to increase total revenue b. would cut its price to increase total revenue c. would increase output to increase total revenue d. would increase output to reduce average total cost e. operates in a perfectly competitive market