Homework Help: Economics

Posted by Sammy on Sunday, December 4, 2011 at 9:26pm.

If the government announced the economy is headed into an expansionary period of rising real GDP and prices, businesses would most likely respond by:
a. lowering wages so that they could afford to hire more workers
b. dismantling some of existing production facilities
c. outsourcing fewer jobs to foreign countries
d. increasing their spending on new capital

i think the answer is A but im not sure
help please

Economics - SraJMcGin, Sunday, December 4, 2011 at 9:30pm
Try some of the following links for verification and ideas:

http://www.google.com/search?q=If+conomy+is+heading+into+an+expansoionary+period%2C+with+rising+GOP+%26+prices%2C+would+would+businesses+do+to+respond%3F&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a

Sra
Economics - Ms. Sue, Sunday, December 4, 2011 at 9:32pm
I disagree.

If the economy is expanding, wouldn't businesses also want to expand?
Economics - Sammy, Sunday, December 4, 2011 at 10:28pm
so D?
Economics - Ms. Sue, Sunday, December 4, 2011 at 10:29pm
Yes. I agree with D.

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