If the Price Level Rises Above What Was Expected and Nominal

question 317

Multiple Choice

If the price level rises above what was expected and nominal wages are fixed, then

• A)production becomes less profitable so firms will hire fewer workers.
• B)production becomes less profitable so firms will hire more workers.
• C)production becomes more profitable so firms will hire fewer workers.
• D)production become more profitable so firms will hire more workers.

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Definitions:

Dividend Yield

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price, indicating the return on investment for shareholders.

Financial Analysis

The process of evaluating businesses, projects, budgets, and other finance-related entities to determine their performance and suitability.

Financial Condition

An assessment of an entity's ability to meet its financial commitments, based on its assets, liabilities, and equity positions at a given time.

Corporation

A legal entity that is separate and distinct from its owners, which can own assets, incur liabilities, and be sued or sue.