If the Price Level in an Economy Turns Out to Be

If the price level in an economy turns out to be higher than that expected by workers and firms, firms _____

A) increase the quantity supplied more than the economy's potential output.
B) decrease the quantity supplied less than the economy's potential output.
C) produce the quantity supplied the same as the economy's potential output.
D) decrease the quantity supplied.
E) a recessionary gap develops.

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