If the Actual Price Level Is 165,but People Had Been

question 90

Multiple Choice

If the actual price level is 165,but people had been expecting it to be 160,then

• A)the quantity of output supplied rises,but only in the short run.
• B)the quantity of output supplied rises in the short run and the long run.
• C)the quantity of output supplied falls,but only in the short run.
• D)the quantity of output supplied falls in the short run and the long run.

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Definitions:

401k

A retirement savings plan that is sponsored and set up by an employer for its employees; like other retirement plans, there are strict rules as to when the money can be withdrawn without a penalty and strict contribution limits which change from year to year.

Mortality Table

A statistical table showing the probability of death for each age, used primarily by insurance companies to determine premiums.

Full Retirement Benefit

The total amount of money one is entitled to receive from a pension or retirement fund upon reaching the designated retirement age.

Adjusting for Inflation

The process of altering financial figures to account for the change in the purchasing power of money over time.