If the Actual Price Level Is Less Than the Expected

question 8

Multiple Choice

If the actual price level is less than the expected price level reflected in long-term contracts,_____.

• A)firms will find production more profitable in the short run than they had expected and will decrease the quantity of output supplied
• B)firms will find production less profitable in the short run than they had expected and will decrease the quantity of output supplied
• C)firms will find production more profitable in the short run than they had expected and will increase the quantity of output supplied
• D)resource owners will earn higher returns in the short run than they had expected and will decrease the quantity of resources supplied
• E)unemployment will increase in the short run as firms will substitute labor with capital inputs

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Definitions:

Pulmonary Fibrosis

A lung disease that occurs when lung tissue becomes damaged and scarred, impeding effective gas exchange and breathing.

Chronic Bronchitis

A long-term inflammation of the bronchi in the lungs, often caused by smoking, leading to coughing and difficulty breathing.

Emphysema

A lung condition that is part of chronic obstructive pulmonary disease (COPD), characterized by damage to the air sacs (alveoli), leading to difficulty breathing.

Pulmonary Tuberculosis

Respiratory infection caused by the bacterium Mycobacterium tuberculosis.