In the long run, if the price level increases, then nominal wages and other input prices will rise.
What happens to input prices when the price level rises in the long run?
In the long run, input prices completely adjust to changes in the price level of final goods.
While in the short run, input prices do not follow the pattern of the price level, in the long run, increasing the price level tends to force wages and other input prices to rise.
However, for producers' output level, there will be no noticeable changes with the increasing production costs.
Thus, in the long run, if the price level increases, then nominal wages and other input prices will rise.
Learn more about the long-run effects of increasing price levels on input prices at https://brainly.com/question/17111814
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