Which of the following will increase macroeconomic equilibrium prices?
A)an increase in government spending.
B)an increase in productivity.
C)an increase in taxes.
D)a decrease in input prices.

Question

Quizplus · Accepted Answer

An increase in government spending will increase aggregate demand, leading to an increase in prices at macroeconomic equilibrium. The other options would lead to a decrease in prices (B, D) or have no clear impact on prices (C).

Which of the Following Will Increase Macroeconomic Equilibrium Prices