If the Price Level Rises Above What Was Expected and Nominal

question 51

Multiple Choice

If the price level rises above what was expected and nominal wages are fixed,then

• A)production becomes less profitable so firms will hire fewer workers.
• B)production becomes less profitable so firms will hire more workers.
• C)production becomes more profitable so firms will hire fewer workers.
• D)production becomes more profitable so firms will hire more workers.

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Definitions:

Midbrain

Area that contains structures linking the physiological functions of the hindbrain to the cognitive functions of the forebrain.

Amygdala

A region of the brain's limbic system involved in processing emotions, especially fear, anxiety, and aggression.

Hippocampus

A major component of the brain, located in the medial temporal lobe, playing important roles in short and long-term memory and spatial navigation.

Fear Responses

The instinctual reactions and behaviors prompted by threats or perceived dangers, part of the body’s fight-or-flight response.