If the Actual Price Level Exceeds the Expected Price Level

question 11

Multiple Choice

If the actual price level exceeds 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 will find production more profitable than they had expected and will decrease 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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Definitions:

Moist Membrane

Tissue that remains wet and is involved in absorption, secretion, or exchange processes.

Diffusing

The process of a substance spreading from an area of high concentration to an area of lower concentration.

Respiratory Passageways

The paths that air follows to enter and exit the lungs, including the nose, throat, trachea, and bronchi.

Epiglottis

Tissue flap that folds down to prevent food from entering the trachea during swallowing.