If the expected price level exceeds the actual price level,
A)firms increase production in the short run
B)firms decrease production in the short run
C)firms maintain production in the short run but increase prices
D)firms maintain production in the short run but decrease prices
E)firms increase production and raise prices in the short run

Question

Quizplus · Accepted Answer

The Answer of If the expected price level exceeds the actual price level,
A)firms increase production in the short run
B)firms decrease production in the short run
C)firms maintain production in the short run but increase prices
D)firms maintain production in the short run but decrease prices
E)firms increase production and raise prices in the short run

If the Expected Price Level Exceeds the Actual Price Level