In the short run, wages are assumed to be:
a. constant
b. sticky.
c. inflexible.
d. all of the above are true.
d
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Explain how the purchases of used goods and of financial assets affect GDP
What will be an ideal response?
Milton Friedman called the response of lower interest rates resulting from an increase in the money supply the ________ effect
A) liquidity B) price level C) expected-inflation D) income
The Phillips curve explains the trade-off between inflation and unemployment
a. True b. False Indicate whether the statement is true or false
When taxation is proportional, the tax rate an individual pays:
A. remains constant as the individual's income increases. B. falls as the individual's income increases. C. increases as the individual's income increases. D. varies as the individual's income changes.