If the Actual Price Level Is Less Than the Expected

question 118

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 than they had expected and will increase the quantity of output supplied
• B)firms will find production less profitable than they had expected and will decrease the quantity of output supplied
• C)firms,because they are making less profit than they had expected,will increase the quantity of output supplied
• D)resource owners,because they are making a lower profit than they had expected,will decrease the quantity of output supplied
• E)unemployment will increase

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