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A small business increases output in response to rising prices. The business mistakenly assumed the rising prices were the result of demand increases, when, in
A small business increases output in response to rising prices. The business mistakenly assumed the rising prices were the result of demand increases, when, in fact, it was the result of inflation. This is an example of the __________ problem. Question 49 options: a) tax distortion b) price confusion c) wealth redistribution d) menu cost e) money illusion
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