Suppose the economy is booming and many firms begin to experience an increase in the demand for their goods and services.
(A) Suppose the firms to nat kow whether the change is temparary ar permanent. Haw will they adjust price and autput?
(B) Suppose the fims determine that the change is permanent. Haw will they adjust price and utฝนt?
(C) Esglan the relationship between imperfect infarmation and econamic fluctuations based an you answers to (A) and (B) abcve.

Question

Suppose the economy is booming and many firms begin to experience an increase in the demand for their goods and services.
 (A) Suppose the firms to nat kow whether the change is temparary ar permanent. Haw will they adjust price and autput?
(B) Suppose the fims determine that the change is permanent. Haw will they adjust price and utฝนt?
(C) Esglan the relationship between imperfect infarmation and econamic fluctuations based an you answers to (A) and (B) abcve.

Quizplus · Accepted Answer

The Answer of Suppose the economy is booming and many firms begin to experience an increase in the demand for their goods and services.
 (A) Suppose the firms to nat kow whether the change is temparary ar permanent. Haw will they adjust price and autput?
(B) Suppose the fims determine that the change is permanent. Haw will they adjust price and utฝนt?
(C) Esglan the relationship between imperfect infarmation and econamic fluctuations based an you answers to (A) and (B) abcve.

Suppose the Economy Is Booming and Many Firms Begin to Experience