Solved

As the Price Level Rises Relative to Costs and the Real

Question 144

Multiple Choice

As the price level rises relative to costs and the real wage rate falls,profits ________ and the number of firms in business ________.

A) increase;increases
B) increase;decreases
C) decrease;increases
D) decrease;decreases
E) do not change;do not change

Related Questions

Q139: The aggregate demand multiplier effect says that

Q140: The economy is at full employment.If aggregate

Q141: Which of the following factors could start

Q142: Starting from a situation of full employment,an

Q143: If the economy is at macroeconomic equilibrium,then

Q145: At a peak in the business cycle,the

Q146: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1457/.jpg" alt=" -In the figure

Q147: A fall in the price level produces

Q148: If firms' expectations about the future become

Q149: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1457/.jpg" alt=" -In the above