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Homework answers / question archive /  If the government provides subsidies to all manufacturing and agricultural sectors, what would happen to price level and output? Price Level / Output  Decrease / Indeterminate Increase / Increase Increase / Decrease Increase / Indeterminate  Decrease / Increase  Decrease / Decrease   

 If the government provides subsidies to all manufacturing and agricultural sectors, what would happen to price level and output? Price Level / Output  Decrease / Indeterminate Increase / Increase Increase / Decrease Increase / Indeterminate  Decrease / Increase  Decrease / Decrease   

Economics

 If the government provides subsidies to all manufacturing and agricultural sectors, what would happen to price level and output? Price Level / Output 
Decrease / Indeterminate Increase / Increase Increase / Decrease Increase / Indeterminate 
Decrease / Increase 
Decrease / Decrease 
 

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The correct option is 5th "Decrease / Increase". When the government provides subsidies to all manufacturing and agricultural sectors, It will increase the income of these sectors. When there income will increase, they will produce more output and price of output will decrease. It will help in consumer welfare. 

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