Multiple Choice
You are likely to think that the relative price of your good has risen and you should increase your output if you expected
A) the inflation rate to be 10% and the price of your good rose 7%.
B) the inflation rate to be 10% and the price of your good rose 10%.
C) the inflation rate to be 10% and the price of your good rose 13%.
D) the inflation rate to be 0% and the price of your good fell 10%.
Correct Answer:
Verified
Correct Answer:
Verified
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