Multiple Choice
A rising price level in the short run may create an incentive for firms to increase production because
A) costs of production will increase
B) total sales revenue will decrease
C) profits will increase
D) costs of production will increase faster than total revenue
E) output prices are generally not fixed by contract whereas resource prices are
Correct Answer:
Verified
Correct Answer:
Verified
Q19: The actual price level is assumed to
Q181: Potential output will decrease if<br>A)there is an
Q182: Exhibit 10-3 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 10-3
Q183: Which of the following supply shocks would
Q184: If the inflation rate is 4 percent
Q185: In the short run,but not in the
Q187: An increase in the federal minimum wage
Q189: Because some resource prices are assumed to
Q190: In the long run,the aggregate demand curve
Q191: A coordination failure occurs when<br>A)production on a