An unexpected increase in the price level that temporarily lowers real wages and induces more employment and output in an economy, occurs in
a. nominal-supply theory.
b. stagflation.
c. misperceptions theory.
d. sticky-wage theory.
d
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>By the transitivity property, if A > B and B > C then:
A. A ~ C B. A > C C. B ~ C D. A < C
The simple deposit multiplier is the ratio of the amount of
A) new reserves created by the banks to the amount of deposits. B) new reserves created by the banks to the amount of loans. C) deposits created by the banks to the amount of new reserves. D) loans issued by the banks to deposits created by the banks.
Provide a concise statement about the relationship between a developing country's emphasis on the export of traditional commodities and:
(a) export earnings stability; (b) comparative advantage; (c) terms of trade.
All else constant, a large decrease in the number of people who want to own sport utility vehicles (SUVs) because of their poor fuel efficiency could be expected to cause:
A) an increase in the supply of SUVs. B) a decrease in the equilibrium price of gasoline. C) an increase in the equilibrium price of SUVs. D) an increase in the supply of gasoline.