Multiple Choice
When aggregate demand declines unexpectedly and wage contracts are fixed, then the average price level will:
A) increase and business firms will hire new workers.
B) decline and firms will reduce wages.
C) decline and business firms will lay off workers.
D) increase and business firms will lay off workers.
E) increase and business firms will increase wages.
Correct Answer:
Verified
Correct Answer:
Verified
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