Other things the same, when the price level rises more than expected, some firms will have higher than desired prices which increases their sales. higher than desired prices which depresses their sales. lower than desired prices which increases their sales. lower than desired prices which depresses their sales.

Other things the same, when the price level rises more than expected, some firms will have higher than desired prices which increases their sales. higher than desired prices which depresses their sales. lower than desired prices which increases their sales. lower than desired prices which depresses their sales.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter13: Inflation

Section: Chapter Questions

Problem 6SQ

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Similar questions

Other things the same, when the price level rises more than expected, some firms will have a. higher than desired prices, which increases their sales. b. higher than desired prices, which depresses their sales. c. lower than desired prices, which increases their sales. d. lower than desired prices, which depresses their sales.
At a price level of 105, firms are unable to _______. A. meet the demand for their output, so they increase production and raise prices B. sell their output, so they cut production and aggregate supply decreases C. meet the demand for their output, so they increase production and aggregate supply increases D. sell their output, so they cut production and lower prices
Expectations of higher future prices cause firms to lower prices today to sell their product before prices rise? True or false
True/ false A increase in the general price level is a good sign to the well being of the people.
The aggregate quantity demand of real GDP A. increases if the price level rises. B. decreases if the price level rises. C. does not change with prices. D. All of the choices above are correct.
If aggregate supply is vertical, then which of the following statements must be true? Aggregate demand does not affect the quantity of output. Inflation creates greater social benefits. Inflation will accompany any rise in output. Aggregate demand does not cause inflationary changes in price level.
A large reduction in oil prices will cause: Group of answer choices a leftward shift in the aggregate demand curve. a rightward shift in the aggregate supply curve. a leftward shift in the aggregate supply curve. a rightward shift in the aggregate demand curve.
The horizontal axis is labeled real output. Points Q 1, Q subscript f, and Q 2 are marked on the horizontal axis from left to right. The vertical axis is labeled price level. Points P 1, P 2, and P 3 are marked on the vertical axis from bottom to top. A rising line labeled A S 1 begins at the bottom left, passes through e (Q subscript f, P 1) and g (Q 2, P 2), and ends at the top-right. Another rising line labeled A S 2 begins at a point that is above the starting point of A S 1 passes through a (Q 1, P 1), b (Q subscript f, P 2), c (Q 2, P 3), and ends at a point that is above the ending point of A S 1. Another rising line labeled A S 3 begins at a point that is above the starting point of A S 2 passes through f (Q 1, P 2), d (Q subscript f, P 3), and ends at a point that is above the ending point of A S 2. Refer to the diagram. Assume that nominal wages initially are set based on the price level P2 and that the economy initially is operating at its full-employment level of output…
Identify and briefly describe the problems that always arise from measuring price levels with a fixed basket of goods and what steps can be taken to counter these problems.
The ratchet effect means that: Multiple Choice when aggregate demand increases, the price level remains constant. when aggregate supply increases, the price level decreases. when aggregate demand decreases, the price level remains constant. when aggregate supply decreases, the price level increases.
Suppose an aggregate supply curve shifts right and this is the only change in the economy. What will certainly NOT happen? Group of answer choices: Higher output Lower output Lower price level Aggregate demand curve remains unchanged Which of the following helps to increase employment and decrease inflation? Group of answer choices: Right shift of an aggregate supply curve Right shift of the aggregate demand curve Left shift of the aggregate demand curve Left shift of an aggregate supply curve
Demand–pull inflation occurs when increases until equilibrium output exceeds the full employment level.