According to the new Keynesian economists, SAS adjusts slowly to a change in AD because of
A) high menu costs.
B) staggered overlapping wage contracts.
C) efficiency wages.
D) All of the above combinations explain slow adjustments in SAS.
D
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Falling growth rates during the 2007-2009 recession occurred:
A. only in the United States. B. in the United States and Canada, but not in Germany, the United Kingdom, or Japan. C. only in the high-tech sectors of the U.S. economy. D. in the United States, Canada, Germany, the United Kingdom, and Japan.
Trade that is within a country or between countries is based on the principle of
A) comparative advantage. B) scarcity. C) competition. D) absolute advantage.
The advantage of forward contracts over future contracts is that they
A) are standardized. B) have lower default risk. C) are more liquid. D) are more flexible
In a closed economy ________
A) investment equals consumption B) investment equals savings C) saving equals consumption D) exports are greater than imports