Sticky nominal wages can result in
a. lower profits for firms when the price level is lower than expected.
b. a decrease in real wages when the price level is lower than expected.
c. a short-run aggregate-supply curve that is vertical.
d. a long-run aggregate-supply curve that is upward-sloping.
a
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The U.S. government restricts the production of peanuts by limiting production licenses. By also prohibiting imports, the government maintains prices well above levels peanut farmers would obtain if supply were not restricted. This program has the same effect as a
A. price ceiling. B. price floor. C. opportunity cost. D. shortage. E. efficiency move.
In the absence of the negative externality from each individual's contribution to road congestion, roads would not be congested (aside from congestion caused by accidents).
Answer the following statement true (T) or false (F)
Critically evaluate the following statement. "It's better to make people wait in line than it is to make them have to pay more for the product."
What will be an ideal response?
If interest rates rise by 5 percentage points, say, from 10 to 15%, bank profits (measured using gap analysis) will
A) decline by $0.5 million. B) decline by $1.5 million. C) decline by $2.5 million. D) increase by $1.5 million.