Suppose the Actual Price Level Exceeds the Expected Price Level

question 63

Multiple Choice

Suppose the actual price level exceeds the expected price level reflected in long-term contracts.How will unemployment be affected?  

• A) Unemployment will increase. 
• B) Unemployment will decrease. 
• C) Unemployment will stay the same. 
• D) Unemployment will become underemployment.

---

Definitions:

Welfare-based Justice

A principle of justice that focuses on the distribution of resources and opportunities to ensure the well-being and minimum standards of living for all.

Contribution-based Justice

The principle that rewards and recognition should be based on the level of contribution an individual or group makes.

Blind Justice

A principle that justice should be impartial and not influenced by bias, prejudice, or the identity of the parties involved.

Confirmation Bias

The inclination to seek out, comprehend, prefer, and remember data in a manner that validates one's already established convictions or theories.