If the actual price level is higher than the expected price level,the economy will expand in the short run.

Name: If the actual price level is higher than the expected price level,the economy will expand in the short run.
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When the actual price level is higher than the expected price level, suppliers are willing to increase their output due to the higher profits they can earn. This leads to an increase in employment, output, and income, leading to an expansion in the economy in the short run.

If the Actual Price Level Is Higher Than the Expected