According to the imperfect-information model, when the price level rises and the producer expects the price level to rise, the producer:
A)increases production.
B)does not change production.
C)decreases production.
D)hires more workers.

Question

Quizplus · Accepted Answer

In the imperfect-information model, if the producer expects the price level to rise, they have already adjusted their expectations, so there is no surprise, and production remains unchanged.

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