Other things the same,if workers and firms expected prices to rise by 2 percent but instead they rise by 3 percent,then
A)employment and production rise.
B)employment rises and production falls.
C)employment falls and production rises.
D)employment and production fall.

Question

Quizplus · Accepted Answer

When prices rise more than expected, firms may see higher profits and increase production, leading to higher employment.

Other Things the Same,if Workers and Firms Expected Prices to Rise