A theory suggesting that price stickiness leads to sluggish short-run adjustment of the price level to variations in aggregate demand is known as
A) new Keynesian flexible-price business cycles.
B) new Keynesian inflation dynamics.
C) real-business-cycle fixed-price business cycles.
D) real-business-cycle inflation dynamics.
B
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Refer to the figure above. If the pre-tax equilibrium price of Good X was $3 and the price that consumers need to pay after the imposition of a per-unit tax of $3 is $5, the tax incidence on consumers is approximately ________
A) 50% B) 2% C) 3% D) 67%
Given the information in the table above, if the Home economy suffered a meltdown, and the Unit Labor Requirements doubled to 20 for cloth and 40 for widgets then home should
A) export cloth. B) export widgets. C) export both and import nothing. D) export and import nothing. E) export widgets and import cloth.
If the Fed decreases the money supply, we should expect the interest rate
a. to fall, spending on automobiles and business investment spending to rise, and the price of bonds to increase b. to rise, spending on automobiles and business investment spending to fall, and the price of bonds to decrease c. to rise, spending on automobiles and business investment spending to fall, and the price of bonds to increase d. to fall, spending on automobiles and business investment spending to fall, and the price of bonds to decrease e. to rise, spending on automobiles to fall, business investment to rise, and the price of bonds to decrease
Which of the following terms refers to price elasticity of demand calculated over a range of prices?
A. Unit elasticity B. Cross-price elasticity of demand C. Point elasticity of demand D. Arc elasticity of demand