If the actual price level exceeds the expected price level reflected in long-term contracts,
a. firms will find production more profitable than they had expected and will decrease the quantity of output supplied
b. firms will find production less profitable than they had expected and will decrease the quantity of output supplied
c. firms will find production less profitable than they had expected and will increase the quantity of output supplied
d. unemployment will decrease
D
Economics
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Refer to Figure 11.5. An increase in the level of investment is best illustrated by diagram
A) A. B) B. C) C. D) D.
Economics
A negative income tax system would
a. make taxes more regressive. b. sever the link between tax policy and income distribution. c. collect from high-income households and give transfers to low-income households. d. eliminate progressive tax rates.
Economics