When the economy's actual price level exceeds the expected price level in the short run:
a. the real wages of workers decline
b. the nominal wages of workers increase.
c. firms decrease output below the potential level.
d. the economy produces the natural rate of output.
e. cyclical unemployment in the economy falls to zero.
a
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If the demand for jelly decreases, and the price of grapes (used to make jelly) rises
A) the equilibrium price of jelly falls and the equilibrium quantity of jelly might rise or fall. B) the equilibrium price of jelly rises and the equilibrium quantity of jelly might rise or fall. C) the equilibrium price of jelly might rise or fall, and the equilibrium quantity of jelly falls. D) the equilibrium price of jelly might rise or fall, and the equilibrium quantity of jelly rises.
If the death of an owner causes the firm to dissolve, the firm must have been
A) a partnership only. B) a proprietorship only. C) a corporation only. D) either a proprietorship or a partnership.