The self-correcting tendency of the economy means that falling inflation eventually eliminates:

Suppose that product prices start rising but nominal wages do not. In that case,

A. real wages will fall and firms will want to produce more because doing so will be profitable. B. real wages will rise and firms will want to produce more because doing so will be profitable. C. there will be a surplus of goods and services produced. D. there will be a shortage of goods and services produced.

"A perfectly competitive firm is called a price maker because all the firms together must make the market price." Is the previous statement correct or incorrect? Briefly explain your answer

What will be an ideal response?