In the short run, if the price level rises, then the overall economy c

In the short run, if the price level rises, then the overall economy can temporarily produce beyond its nominal capacity. One reason for this is that

A) existing capital equipment can be used more intensively.
B) the unemployment rate usually rises dramatically along with the price level.
C) workers can be switched from counted to uncounted production.
D) wage rates rise almost simultaneously with the price level.

 

ANSWER

A

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