If the Actual Price Level Exceeds the Expected Price Level

question 73

Multiple Choice

If the actual price level exceeds the expected price level reflected in long-term contracts,

• A)firms will find production more profitable than they had expected and will decrease the quantity of output supplied
• B)firms will find production less profitable than they had expected and will decrease the quantity of output supplied
• C)firms will find production less profitable than they had expected and will increase the quantity of output supplied
• D)resource owners,because they are making a lower profit than they had expected,will decrease the quantity of output supplied
• E)unemployment will decrease

---

Definitions:

Work Opportunities

Various job or career options available for individuals in the workforce.

Workforce

The collective group of individuals engaged in work within an economy or a particular organization or industry.

Post-Formal Cognitive Development

A stage of cognitive development surpassing Piaget's final stage, involving complex thinking that appreciates ambiguity and contradiction.

Metacognition

The awareness and understanding of one's own thought processes, allowing individuals to analyze how they learn, remember, and solve problems.