Question

Other things the same, if workers and firms expected prices to rise by 2 percent but instead they rise by 3 percent, then in the short run______a.employment and production both rise.b.and production falls.c.employment rises employment falls and production rises.d.employment and production both fall.

Answer 1

Answer:

the answer is  d

Explanation:

Other things the same, if workers and firms expected prices to rise by 2 percent but instead they rise by 3 percent, then in the short run employment and production falls.

because workers and firms does not prepared for this change,for one hand workers  will  percieve minor wages and they prefer   not work  ,as a consequence the production falls because the firm does not have enough people t acomplish the production.