If the Price Level Rises Above What Was Expected and Nominal

question 51

Multiple Choice

If the price level rises above what was expected and nominal wages are fixed,then

• A)production becomes less profitable so firms will hire fewer workers.
• B)production becomes less profitable so firms will hire more workers.
• C)production becomes more profitable so firms will hire fewer workers.
• D)production becomes more profitable so firms will hire more workers.

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Definitions:

Formula Box

A field in spreadsheet applications where you enter or edit calculations or functions to be applied to cell data.

Insertion Point

The cursor's location in a document or field where new text or data will be entered.

Vertical Line

A straight line that runs up and down, perpendicular to a horizontal line.

Blinking

A rapid opening and closing of the eyelids or a flickering of light, or to describe text or an object that appears and disappears on a computer screen to attract attention.