If the Actual Price Level Is Higher Than the Expected

question 136

Multiple Choice

If the actual price level is higher than the expected price level,the economy will:

• A)have no structural unemployment.
• B)experience a recession.
• C)experience stagflation.
• D)expand output in the short run.
• E)have no seasonal unemployment.

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Definitions:

Money Income

The total amount of monetary earnings or receipts a person or household receives within a given period.

Utility

In economics, the total satisfaction received from consuming a good or service.

Entrepreneur

An individual who starts, organizes, manages, and assumes the risks of a business or enterprise, often innovating and creating new products, services, or business models.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to buy at different price levels, over a specific time period.