Suppose that firms were expecting inflation to be 3 percent, but it actually turned out to be

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Suppose that firms were expecting inflation to be 3 percent, but it actually turned out to be 7 percent. Other things equal, firm profits will be:

a. smaller than expected.

b. larger than expected.

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Macroeconomics

ISBN: 9781264112456

22nd Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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Question Posted: Mar 02, 2024 01:00 PM

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Suppose that firms were expecting inflation to be 3 percent, but it actually turned out to be

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Macroeconomics

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