If the Price Level Rises Above What Was Expected and Nominal

question 51

Multiple Choice

If the price level rises above what was expected and nominal wages are fixed,then

• A)production becomes less profitable so firms will hire fewer workers.
• B)production becomes less profitable so firms will hire more workers.
• C)production becomes more profitable so firms will hire fewer workers.
• D)production becomes more profitable so firms will hire more workers.

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Definitions:

Line Managers

Supervisors or managers who have direct responsibility over achieving organizational objectives and overseeing day-to-day activities and employees.

HR Department

The division within an organization responsible for managing functions related to human resources, such as hiring, training, and benefits.

Short-Term Bonuses

Financial incentives awarded to employees for achieving immediate or near-future targets or for exceptional performance over a short period.

Deferred Compensation

A portion of an employee's income that is delayed to a later date, often used as a strategy for reducing taxes and saving for retirement.