A short-run decrease in real GDP will
A) increase the price of non-labor inputs,increase input requirements per unit of output,and increase the price level
B) increase the price of non-labor inputs,decrease input requirements per unit of output,and decrease the price level
C) decrease the price of non-labor inputs,decrease input requirements per unit of output,and decrease the price level
D) increase the price of non-labor inputs,decrease input requirements per unit of output,and increase the price level
E) decrease the price of non-labor inputs,increase input requirements per unit of output,and increase the price level

Question

Quizplus · Accepted Answer

A short-run decrease in real GDP typically leads to lower demand for inputs, which can decrease their prices. It also often results in decreased input requirements per unit of output due to reduced production levels, and it generally leads to a decrease in the price level due to lower overall demand in the economy.

A Short-Run Decrease in Real GDP Will