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) equal
D) shift the

Question

Quizplus · Accepted Answer

In the imperfect-information model, when the actual price level exceeds the expected price level, producers mistakenly perceive this as an increase in the relative price of their goods, leading them to increase production. Thus, output will be greater than the natural level of output.

According to the Imperfect-Information Model,when the Price Level Is Greater