Contrary to behavior that would be required to eliminate output gaps, many firms in the economy:
A. adjust their prices only periodically.
B. only change the amount of output they produce in the long run, not in the short run.
C. intentionally set prices below equilibrium prices in order to create shortages.
D. have fully-flexible prices that change constantly.
Answer: A
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What best describes the changes in steel production from 1860-1910?
a. The open-hearth process quickly became the dominant production process after it was invented. b. Technological change in steel production changed relatively slowly. c. No technological changes occurred in the steel industry. d. The production of steel stayed constant through this period, but it became much more efficient.
Some economists argue that federal government capital projects, which offer benefits over a number of years, should be financed through deficit financing
a. True b. False Indicate whether the statement is true or false
A family on a trip budgets $800 for sit-down restaurant meals and fast food. The family can buy 16 restaurant meals if they don't buy any fast food. What is the price of a restaurant meal for the family?
a. $5 b. $16 c. $20 d. $50 e. it is impossible to tell from the information given
A change in quantity supplied of a product is the result of a change in:
A. consumer income. B. the state of production technology. C. the cost of producing the product. D. the price of the product.