Which of the Following Would Not Be an Expected Response

question 176

Multiple Choice

Which of the following would not be an expected response from a decrease in the price level and so help to explain the slope of the aggregate-demand curve?

• A) When interest rates fall,Sleepwell Hotels decides to build some new hotels.
• B) The exchange rate falls,so French restaurants in Paris buy more Iowa pork.
• C) Janet feels wealthier because of the price-level decrease and so she decides to remodel her bathroom.
• D) With prices down and wages fixed by contract,Millio's Frozen Pizzas decides to lay off workers.

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Definitions:

Tax Specialist

A professional expert in tax law, regulations, and planning to optimize taxation outcomes for individuals or businesses.

Tax Return

A document filed with state or federal taxing authorities that reports income, expenses, and other pertinent tax information to calculate tax liability.

Short Run

A period in which at least one input, such as plant size, is fixed and cannot be changed by the firm.

Fixed Plant Capacity

The maximum output that a facility can produce in a given period under normal conditions, determined by its physical size and design.