If the Actual Price Level Is Lower Than the Expected

Multiple Choice

If the actual price level is lower than the expected price level reflected in long-term contracts,

A) many firms will find production more profitable than they had expected and will increase the quantity of output supplied
B) many firms will find production less profitable than they had expected and will decrease the quantity of output supplied
C) many firms will find production more profitable than they had expected and will decrease the quantity of output supplied
D) many firms will find production less profitable than they had expected and will increase the quantity of output supplied