If the price level increases more rapidly than expected,_____.
A)output will decrease
B)output will increase
C)output will not change
D)real wages will increase
E)unemployment will increase

Question

Quizplus · Accepted Answer

When the price level increases more rapidly than expected, firms may see higher profits due to sticky wages and prices, leading to an increase in output as firms respond to higher demand.

If the Price Level Increases More Rapidly Than Expected,_____