A Fall in the Expected Price Level Leads to an Expectation

question 28

Multiple Choice

A fall in the expected price level leads to an expectation that real wages will ____________,which will cause people to work __________,shifting the SRAS curve _______________.

• A) rise; more; rightward
• B) rise; less; leftward
• C) fall; more; rightward
• D) fall; less; leftward

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Definitions:

Inside Information

Material, nonpublic, factual data that can be used to buy or sell securities at a profit.

Nonpublic

Information or entities not available or accessible to the general public, often pertaining to private or confidential matters.

Business Judgment Rule

A legal principle that protects corporate directors and officers from liability for decisions made in good faith and believed to be in the best interest of the company.

Duty of Due Diligence

An obligation to conduct a comprehensive appraisal of a business or individual prior to signing a contract, to avoid harm.