If Resource Suppliers and Demanders Find Out That Their Price

question 195

Multiple Choice

If resource suppliers and demanders find out that their price expectations were wrong,they will take corrective actions that will

• A)cause the economy to move away from the potential output level
• B)raise the unemployment level above the natural rate of unemployment
• C)shift the aggregate demand curve
• D)shift the short-run aggregate supply curve
• E)raise the actual price level

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Definitions:

Network Analysis

A research method in sociology and other disciplines that studies the patterns of relationships among entities or nodes in a network.

Project Costs

The total expenditures incurred in the planning, execution, and completion of a project, including materials, labor, and overhead expenses.

Dependents

Individuals who rely on others for financial support or care, typically within the context of a family or a close relationship.

Rational Choice Theory

An economic principle that states individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.