If the Actual Price Level Exceeds the Expected Price Level

question 73

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 decrease 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 less profitable than they had expected and 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 decrease

---

Definitions:

Corporate Information

Data and details related to the operations, management, and financial status of a company.

Personal Benefit

An advantage or gain that accrues to an individual, often in a context where it might be considered ethically dubious or a conflict of interest.

Personal Liability

Legal responsibility of an individual to answer for debts, actions, or failures, potentially using personal assets to cover obligations.

Canada Revenue Agency

The federal agency that administers tax laws for the Government of Canada and for most provinces and territories.