A government is planning to construct a large hospital. The effect on the country’s price level will depend partly on how many costly raw materials are brought into the country for the hospital and on the level of unemployment in the country. Which combination of imports of materials for the hospital and the level of unemployment is most likely to produce the biggest increase in the price level?
- Aimports of materials: high; unemployment: high
- Bimports of materials: high; unemployment: low
- Cimports of materials: low; unemployment: high
- Dimports of materials: low; unemployment: low