In the Short Run, an Unexpected Increase in Prices Will

question 91

Multiple Choice

In the short run, an unexpected increase in prices will

• A) reduce resource prices and increase the quantity of goods supplied.
• B) decrease the productive capacity of firms and decrease the quantity of goods supplied.
• C) increase the profits of firms, thereby leading them to expand output.
• D) increase the profits of firms, thereby leading them to reduce output.

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