The sticky-wage theory of the short-run aggregate supply curve says that the quantity of output firms supply will increase if
a. the price level is higher than expected making production more profitable.
b. the price level is higher than expected making production less profitable.
c. the price level is lower than expected making production more profitable.
d. the price level is higher than expected making production less profitable.
a
You might also like to view...
For a given amount of nominal income, the real income will
A. rise as the price level rises. B. fall if the price level falls. C. fall if the price level rises. D. be unaffected if the price level falls.
If tastes are Cobb-Douglas, they can be represented by a utility function that is homogeneous of degree k where k can take on any positive value.
Answer the following statement true (T) or false (F)
In what way does long-run equilibrium under monopolistic competition differ from long-run equilibrium under perfect competition?
A) Firms in perfect competition achieve allocative efficiency while firms in monopolistic competition achieve brand efficiency. B) Firms in perfect competition achieve productive and allocative efficiency while firms in monopolistic competition achieve neither allocative nor productive efficiency. C) The only difference is that in a monopolistically competitive market there are many brands to choose from while in a perfectly competitive market there is one standard product. D) Firms in perfect competition achieve productive efficiency while firms in monopolistic competition achieve allocative efficiency.
What is the basic goal of creating and adopting the euro?
A. To reduce the economic inefficiencies of exchanging currencies B. To stabilize the level of prices among nations of the European Union C. To give Europeans more trade protection from businesses in the United States D. To comply with the requirement for admission to the World Trade Organization