The aggregate price level is a topic of macroeconomics.
Answer the following statement true (T) or false (F)
True
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Which of the following is NOT associated with the new Keynesian economics?
A) small-menu cost theory B) market-clearing models to explain business cycles C) inflation dynamics D) sticky-price theories of real GDP determination
An internal economies of scale is defined as
A) one whose size or scale effects are not located in the firm, but in the industry. B) one with falling costs over a specific level of output. C) one with falling costs over a relatively large range of output. D) one with falling costs over a relatively large range of output, but definite declining profits.
A contractionary monetary policy decreases net exports by ________ interest rates and ________ the value of the dollar
A) lowering real; decreasing B) lowering real; increasing C) raising nominal; increasing D) raising real; increasing
Keynesians believe in a relatively stable __________ curve, and thus recommend a monetary policy targeting the __________
A) IS; money supply B) IS; interest rate C) LM; money supply D) LM; interest rate