If the Actual Price Level Is Less Than the Expected

question 8

Multiple Choice

If the actual price level is less than the expected price level reflected in long-term contracts,_____.

• A)firms will find production more profitable in the short run than they had expected and will decrease the quantity of output supplied
• B)firms will find production less profitable in the short run than they had expected and will decrease the quantity of output supplied
• C)firms will find production more profitable in the short run than they had expected and will increase the quantity of output supplied
• D)resource owners will earn higher returns in the short run than they had expected and will decrease the quantity of resources supplied
• E)unemployment will increase in the short run as firms will substitute labor with capital inputs

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Definitions:

Outer Ear

The outermost part of the ear, consisting of the pinna and the external auditory canal.

Middle Ear

The section of the ear between the eardrum and the oval window that amplifies sound waves through the ossicles to the inner ear.

Amplifies Sound Waves

Increases the magnitude or intensity of sound waves, making them louder or more pronounced.

Pitch

The perceived frequency of a sound, determining its highness or lowness, often measured in hertz (Hz).