If the Price Level in the Current Period Is Higher

question 60

Multiple Choice

If the price level in the current period is higher than what buyers and sellers anticipated,

• A) profit margins will be unattractive and firms will expand output.
• B) profit margins will be unattractive and firms will reduce output.
• C) profit margins will be attractive and firms will expand output.
• D) profit margins will be attractive and firms will reduce output.

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Definitions:

Corporation

A legal entity, created by the state, whose assets and liabilities are separate from its owners.