People Had Been Expecting the Price Level to Be 220

question 197

Multiple Choice

People had been expecting the price level to be 220 but it turns out to be 223. In response Green Leaf Paper Company increases the number of workers it employs. What could explain this?

• A)both sticky price theory and sticky wage theory
• B)sticky price theory but not sticky wage theory
• C)sticky wage theory but not sticky price theory
• D)neither sticky wage theory nor sticky price theory

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Definitions:

Entire Family

Refers to all members of a family unit, including parents, children, and sometimes extended relatives.

Microsystems

Small-scale, tightly integrated systems combining hardware and software to perform specific tasks, often part of a larger system.

Dwelling

A place where people live, such as a house or apartment.

Power

The ability or capacity to influence or control the behavior of others or the course of events.