Suppose Firms Are Continually Surprised by Higher-Than-Expected Price Levels

question 153

Multiple Choice

Suppose firms are continually surprised by higher-than-expected price levels.Which of the following might be true?

• A)the consumer price index will rise
• B)potential output will increase
• C)potential output will decrease
• D)actual output will be less than potential output in the long run
• E)actual output will exceed potential output in the short run

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Definitions:

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Cultural Psychologists

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The measurement of the size, shape, and composition of the human body.