An Unexpected Increase in the Price Level Does Not Shift

question 120

True/False

An unexpected increase in the price level does not shift the aggregate-supply curve, but an expected increase in the price level shifts the aggregate-supply curve to the left.

---

Definitions:

Sales Tax

A tax on sales or receipts from sales, usually calculated as a percentage of the sale price and collected by the seller from the consumer at the point of sale.

Merchandise Sold

The total value of goods that have been sold by a company during a specific period, often reported on the income statement.

Sales Tax Department

The government department or agency responsible for collecting, administering, and enforcing sales tax regulations and payments.

Sales Tax Percentage

The rate at which sales tax is applied to the purchase price of goods and services, expressed as a percentage.