If the Expected Price Level Falls Below the Actual Price

question 62

Multiple Choice

If the expected price level falls below the actual price level,

• A)the inflation rate must be negative
• B)the inflation rate must be positive
• C)production becomes less attractive to firms
• D)production becomes more attractive to firms
• E)the short-run aggregate supply curve is negatively sloped

---

Definitions:

Oswald The Rabbit

An early animated cartoon character created by Walt Disney and Ub Iwerks, predating Mickey Mouse and known for its significance in animation history.

Greek Myth

A collection of stories belonging to the ancient Greeks concerning their gods and heroes, the nature of the world, and the origins and significance of their religious practices.

Daedalus

a skilled craftsman and artist in Greek mythology, known for creating the Labyrinth and the wings for his son Icarus.

Icarus

In Greek mythology, a young man who attempted to escape Crete by wings made of feathers and wax, but flew too close to the sun, causing his demise.