If the Price Level Is Higher Than Expected,firms Might Raise

question 81

Multiple Choice

If the price level is higher than expected,firms might raise their production in the short run if

• A)the nominal wage they pay their employees was set based on the expected price level.
• B)prices are costly to adjust and they have set their price at some time in the past but are not ready to change it.
• C)they believe that the price of their product has risen relative to the price of other products,when in fact the rise in the price of their product reflects an increase in the general price level.
• D)All of the above are correct.

---

Definitions:

Clicking

The action of pressing and releasing a button on a mouse or another pointing device to interact with digital elements.

Background Color

An attribute or property that sets the color behind an element or screen in web pages or graphical user interfaces.

Applet

A small application typically programmed in Java, that runs within a web browser or viewer.

Radio Buttons

GUI elements that allow users to select one option from a set, typically rendered as a small circle that can be filled or cleared to indicate selection.