Fluctuations in the target interest rate in the New Keynesian model lead to all of the following except
A) procyclical real wages.
B) procyclical employment.
C) countercyclical prices.
D) procyclical consumption.
C
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In the long-run equilibrium, a monopolistically competitive firm earning normal profit produces the allocatively efficient output level
Indicate whether the statement is true or false
Suppose the economy is at full employment and firms become more pessimistic about the future profitability of new investment. Which of the following will happen in the short run?
A) The aggregate demand curve will shift to the right. B) Unemployment will rise. C) Prices will rise. D) Output will rise.
The highest percentage of uses of health care funds in the U.S. for 2010 was
A. research. B. hospital care. C. home health care. D. nursing home care.
Which of the following is typically not classified as a monopolistically competitive industry?
A. Restaurants and fast food chains B. Grocery stores C. Gas stations D. All of these choices are typically monopolistic competitors.