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Which of the Following Would Generally Cause Firms to Expand

Question 187

Multiple Choice

Which of the following would generally cause firms to expand output in the short run?


A) a proportional increase in the prices of goods and services and the costs of producing them
B) higher profit margins as the result of an unexpected increase in the prices of goods and services
C) an unexpected reduction in aggregate demand
D) an increase in wages and the prices of other resources

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