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If the Expected Price Level Exceeds the Actual Price Level,then

Question 111

Multiple Choice

If the expected price level exceeds the actual price level,then firms will


A) expand output hoping that prices will rise
B) expand output if workers suffer from money illusion
C) expand output if some resource prices are fixed by contracts
D) reduce output if some resource prices are fixed by contracts
E) reduce output if workers suffer from money illusion

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