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In the Long Run, If the Price Level Increases, Then

Question 86

Multiple Choice

In the long run, if the price level increases, then nominal wages and other input prices will


A) also rise, so firms will reduce their output level.
B) also rise, so firms will not change their output level.
C) not change, so firms will not change their output level.
D) decrease, so firms will increase their output level.

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