In the short run,what is the result of an increase in the price level?
A)Output prices will not change relative to input prices.
B)Output prices will rise relative to input prices.
C)Output prices could either rise or fall relative to input prices.
D)Output prices will fall relative to input prices.

Question

Quizplus · Accepted Answer

In the short run, an increase in the price level typically leads to output prices rising relative to input prices because input prices are often sticky and do not adjust immediately.

In the Short Run,what Is the Result of an Increase