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If the price level in the current period is higher than what buyers and sellers anticipated,...

If the price level in the current period is higher than what buyers and sellers anticipated, what will tend to happen to real wages and the level of employment? How will the profit margins of business firms be affected? How will the actual rate of unemployment compare with the natural rate of unemployment? Will the current rate of output be sustainable in the future? 6. Why is an unanticipated increase in the price level likely to expand output in the short run, but not in the long run?

Why is an unanticipated increase in the price level likely to expand output in the short run,

but not in the long run?

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