If the Price Level in the Current Year Is Much

question 2

Multiple Choice

If the price level in the current year is much higher than the expected price level in an economy, _____

• A) firms will increase production beyond the economy's potential level.
• B) the natural rate of unemployment rate will increase.
• C) firms will decrease production below the economy's potential level.
• D) the short-run aggregate supply curve will become steeper.
• E) the unemployment rate will fall to zero.

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Definitions:

Federal Trade Commission Act

A United States federal law established in 1914 to prevent unfair or deceptive business practices, including antitrust violations.

Lanham Act

A United States federal statute that governs trademarks, service marks, and unfair competition, providing guidelines for the registration and legal protection of brands.

Regulatory Forces

External rules and regulations imposed by governing bodies that affect how businesses operate and interact with customers.

F. Hoffman-LaRoche Ltd.

A global pharmaceutical and diagnostics company that focuses on advancing science to improve people's lives.