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Fixed Resource Prices Help Explain Why Firms

Question 15

Multiple Choice

Fixed resource prices help explain why firms


A) increase output in the short run when the price level increases
B) keep production levels constant in the short run when the price level decreases
C) sell output in the short run at fixed prices
D) increase output in the long run when the price level increases
E) decrease production when nominal wages fall in the long run

Correct Answer:

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