If the Actual Price Level Is 165,but People Had Been

question 90

Multiple Choice

If the actual price level is 165,but people had been expecting it to be 160,then

• A)the quantity of output supplied rises,but only in the short run.
• B)the quantity of output supplied rises in the short run and the long run.
• C)the quantity of output supplied falls,but only in the short run.
• D)the quantity of output supplied falls in the short run and the long run.

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Definitions:

Decades

Periods of ten years, used as a measure of time to describe longer trends in history, economics, or demography.

Cyclical Unemployment

This refers to unemployment that occurs due to fluctuations in the economy, often increasing during a recession and decreasing during an economic expansion.

Unemployment Rate

The fraction of the working population that is not employed and is on the lookout for work.

Recovery

The phase of the business cycle in which economic activity picks up and the economy begins to grow after a recession.