If the price level in the current year is much higher than the expected price level in an economy, _____

Fill in the blank(s) with the appropriate word(s).

firms will increase production beyond the economy's potential level.

Economics

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Assume that the price for lawn care has fallen and sales of lawn care services have also fallen. One can conclude that

A) the demand for lawn care service has decreased. B) the law of supply has been violated. C) lawn care services are deliberately charging low prices because they want to discourage people from maintaining their own lawns. D) the number of lawn care service companies has increased.

Economics

An increase in real interest rates will ________ current consumption for households who are lenders and will ________ current consumption for households who are borrowers

A) increase; decrease B) decrease; increase C) have an unclear effect on; decrease D) decrease; have an unclear effect on

Economics