Available evidence about price adjustments across U.S. industries indicates that
A) prices are very sticky in all industries.
B) prices are equally flexible in all industries.
C) prices are very flexible in all industries.
D) there is considerable variation in price flexibility across industries.
D
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The above figure shows a restaurant engaged in monopolistic competition with other restaurants. The equilibrium quantity at this restaurant is ________ meals per day
A) less than 150 B) between 151 and 250 C) between 251 and 350 D) between 451 and 450 E) more than 451
Rolls-Royce may actually sell fewer cars at lower prices due to the “snob effect.”
Answer the following statement true (T) or false (F)
If the nominal interest rate is 6% and the inflation rate is 9%, then the real interest rate is
A) -3%. B) 3%. C) 6.67%. D) 15%.
Answer the following statements true (T) or false (F)
1. National income accountants eliminate double counting of intermediate goods by using only the value of final goods. 2. Current disposable income can be adjusted for price changes and population changes to yield real per capita disposable income. 3. A transfer payment is a payment of money in return for which no current goods or services are produced. 4. The value of leisure is not taken into consideration in GDP accounting. 5. When final sales are less than GDP, a net reduction in inventory has taken place.