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Answer to Question #123387 in Macroeconomics for Thando

Question #123387
Which of the following is correct. If actual prices are higher than expected prices.

A. Employment will decrease.
B. Production costs will decrease.
C. Employment will increase.
D. Wages will decrease.
1
Expert's answer
2020-06-23T04:31:55-0400

Employment will increase,this is because there will be increased quantity due to high prices in the market. The rate of production will also increase but for the short run.


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