An increasing price level and increased unemployment rate most likely come from
A) rising input prices.
B) higher income taxes.
C) lower interest rates.
D) increases in the value of the Canadian dollar.
E) improvements in technology.

Question

Quizplus · Accepted Answer

An increasing price level is often caused by rising input prices, such as the cost of raw materials or labor. When input prices rise, it becomes more expensive for businesses to produce goods and services, leading to higher prices for consumers. Increased unemployment rate could also be a result of the same cause, as businesses may have to cut back on staff to compensate for the increased input costs.

An Increasing Price Level and Increased Unemployment Rate Most Likely