The menu cost theory suggests that
A. frequent price changes are costly for firms.
B. perfect competition does not exist.
C. there will be no unemployment.
D. wages and prices move freely and quickly.
Answer: A
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Which monetary policy rule needs a stable demand for money to work well?
A) inflation targeting rule B) nominal GDP targeting rule C) k-percent rule D) discretionary monetary policy E) monetary base instrument rule
Since the 1950s, total private sector expenditures in the United States fell by half to 50 percent of GDP
a. True b. False Indicate whether the statement is true or false
If intended investment is $1 billion and unwanted inventory is $0, then we know that
a. all of the following statements are true b. saving = $0 c. consumption = $1 billion d. the economy will grow e. actual investment = $1 billion
Mexico's gains from NAFTA have benefited mostly:
a. unskilled workers. b. semi-skilled workers. c. higher-income workers. d. agricultural workers.