According to the imperfect-information model, when the price level is greater than the expected price level, output will _____ the natural level of output
A) be greater than
B) be less than
C) be equal to
D) shift the

Question

Quizplus · Accepted Answer

According to the imperfect-information model, when the price level is greater than the expected price level, firms will produce more than the natural level of output in order to take advantage of the higher prices. Therefore, output will be greater than the natural level of output.

According to the Imperfect-Information Model, When the Price Level Is