What would be the best description of what we assume about money prices in the short run?
A) Money prices of goods and services vary.
B) Money prices of goods and services not related to each other.
C) Money prices of goods are fixed.
D) Money prices of services are fixed.
E) Money prices of goods and services are only temporarily fixed.
E
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The above table shows the percent of sales held by the four largest firms in an industry
a) Calculate this industry's four-firm concentration ratio. b) Is this industry competitive? c) What market type does it most likely represent?
Which of the following leads to a fundamental difficulty for stabilization policy?
a. Time lags in policy decisions b. Presence of shock absorbers in the economy c. Absence of data on the effectiveness of policy measures d. Existence of self-correcting mechanism
If the government chooses not to buy or sell foreign currencies, it has a:
A. flexible exchange rate. B. fixed exchange rate. C. gold standard. D. partially-flexible exchange rate.
The price faced by a perfectly competitive firm is
A. determined by market demand and supply. B. the same as the market demand curve. C. the same as the market supply curve. D. the same as the firm's marginal cost curve.