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If the price level of what firms produce is rising across an economy, but the costs of production are constant, then: a) the maximum potential GDP will be exceeded. Ob) increase in quantity produced won't be large. c) higher profits will induce expanded production. d) a majority of industries will start running into limits.

If the price level of what firms produce is rising across an economy, but the costs of production are constant, then: a) the maximum potential GDP will be exceeded. Ob) increase in quantity produced won't be large. c) higher profits will induce expanded production. d) a majority of industries will start running into limits.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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If the price level of what firms produce is rising across an economy, but the costs of production are constant, then: a) the maximum potential GDP will be exceeded. Ob) increase in quantity produced won't be large. c) higher profits will induce expanded production. d) a majority of industries will start running into limits.
Transcribed Image Text:If the price level of what firms produce is rising across an economy, but the costs of production are constant, then: a) the maximum potential GDP will be exceeded. Ob) increase in quantity produced won't be large. c) higher profits will induce expanded production. d) a majority of industries will start running into limits.
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