Hydraulic fracturing (fracking) has the potential to significantly increase the amount of natural gas produced in the United States. If a large percentage of factories and utility companies use natural gas, what will happen to output, the price level, and employment as fracking becomes more widely used?

Companies will be able to produce more output, or to produce the same amount of output at a lower cost, meaning that they will also be able to lower prices.

They will be able to produce more output, because if fracking becomes more widespread, more gas will be available, at lower prices, thus, factories will use more gas, and run for longer periods of time, increasing production.

They can also produce the same with less costs because now gas is cheaper, so a big part of the manufacturing costs has fallen.