When the Actual Change in the Price Level Differs from Its

question 95

Multiple Choice

When the actual change in the price level differs from its expected change,which of the following can explain why firms might change their production?

• A)both menu costs and mistaking a price level change for a change in relative prices
• B)menu costs but not mistaking a price level change for a change in relative prices
• C)mistaking a price level change for a change in relative price but not menu costs
• D)neither menu costs nor mistaking a price level change for a change in relative prices

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Definitions:

Mole

A unit in chemistry used to express amounts of a chemical substance, based on the number of atoms or molecules.

Molecular Weight

A measure of the mass of a molecule, calculated as the sum of the atomic masses of all atoms constituting the molecule.

Grams

A metric unit of mass equal to one thousandth of a kilogram.

Mass

A measure of the amount of matter in an object, often quantified in units like kilograms or grams.