Which of the following schools of thought believes that wages and prices are rigid in the short run?
a. Keynesians and new Keynesians
b. Only monetarists
c. Only new classical economists
d. Monetarists and new classical economists
e. Monetarists and Keynesians
a
You might also like to view...
Why is the foreign exchange market so vital?
What will be an ideal response?
Supply curves are positively-sloped because of
a. inefficient allocation of resources. b. the law of diminishing returns. c. economies of scale. d. self-interested suppliers seeking economic profit. e. all of the above.
Economic theory states that losing comparative advantage in one good means creating a comparative advantage in another. This suggests that:
A. those who experience the transition may find it difficult in the short run. B. it canbe seen as a success in the short run. C. outsourcing willalways be good for every member of a society. D. in the long run people may not like it, but no one will complain in the short run.
The primary reason commercial banks must keep required reserves on deposit at the Fed is to:
A. Add to the liquidity of the commercial bank B. Allow the Fed to control the amount of bank lending C. Protect the deposits in the commercial bank against losses D. Ensure that depositors can withdraw their money if they wish to