Once Decision Makers Fully Adjust to an Increase in Prices

question 216

Multiple Choice

Once decision makers fully adjust to an increase in prices,

• A) the natural rate of unemployment will decline.
• B) competitive forces will restore the usual relationship between product prices and costs.
• C) producers' profits will exceed their normal level.
• D) producers will expand output beyond the economy's potential.

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Definitions:

Descriptive Words

Words that are used to describe or give more information about a noun or pronoun.

Same Density

A condition where two substances have an equal mass-to-volume ratio.

Fault

A fracture along which the adjacent rock surfaces are displaced parallel to the fracture.

Rock Layers

Horizontal strata of rocks, each layer typically representing a period of deposition in Earth's geological history.