In the short run, the price level
a. will decrease if unit costs and markups both increase throughout the economy
b. will remain stable if unit costs increase throughout the economy
c. is unimportant in macroeconomics
d. will increase if unit costs increase throughout the economy
e. is determined by the Fed
D
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If firms' inventories exceed their planned inventories, firms
A) increase employment. B) increase GDP. C) increase production. D) increase income. E) decrease production.
In a perfectly competitive market, the equilibrium price
a. is determined by all the buyers in the market but no single buyer is able to influence it b. is determined by all the sellers in the market but no single seller is able to influence it c. adjusts until the quantity supplied by all sellers is equal to the quantity demanded by all buyers d. is not influenced by the cost structure of the firms in the market e. is not influenced by the preferences of the consumers in the market