If input prices are fixed in the short run but can vary in the long run, high demand for inputs will push input prices up, and firm profits begin to fall, which means Blank______. Multiple choice question. firms start to default on loans that were used to finance equipment, which leads to less than full-employment output workers keep demanding overtime which leads firms to produce more than full-employment output firms lose the motive to produce above full-employment output firms continue extremely high rates of utilization and inflation starts to accelerate