Other Things the Same,if Workers and Firms Expected Prices to Rise

question 31

Multiple Choice

Other things the same,if workers and firms expected prices to rise by 2 percent but instead they rise by 3 percent,then

• A)employment and production rise.
• B)employment rises and production falls.
• C)employment falls and production rises.
• D)employment and production fall.

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Definitions:

Average Total Cost Curve

A graph that shows a firm's per-unit cost (both fixed and variable) at various levels of output.

Upward-sloping

Describes a curve on a graph that moves higher as it goes from left to right, often used to illustrate the relationship between price and supplied quantity in supply curves.

Short-run Supply Curve

A graphical representation showing the quantity of goods that producers are willing to supply at various prices over a short period, where at least one input is fixed.

Perfectly Competitive Market

A theoretical market structure characterized by an infinite number of small firms, homogeneous products, perfect information, and ease of entry and exit.