People Had Been Expecting the Price Level to Be 220

question 197

Multiple Choice

People had been expecting the price level to be 220 but it turns out to be 223. In response Green Leaf Paper Company increases the number of workers it employs. What could explain this?

• A)both sticky price theory and sticky wage theory
• B)sticky price theory but not sticky wage theory
• C)sticky wage theory but not sticky price theory
• D)neither sticky wage theory nor sticky price theory

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Definitions:

Environment

The natural world, including land, water, air, plants, and animals, as well as the physical and biological conditions affecting human life and society.

Feedback

Information provided about the result of a process or activity, used as a basis for improvement or adjustment.

Significant Other

A significant other is a term used to describe a person who plays a major or central role in an individual's life, often a romantic partner but can also include a close friend or family member.

Generalized Other

The generalized other is a concept in sociology that refers to the general notion that a person has of the common expectations and attitudes of the social group or society they are a part of.