In the new classical model, all wages and prices ________
A) are completely flexible with respect to expected changes in the price level
B) are fixed with respect to expected changes in the price level
C) are flexible with respect to the value of the dollar
D) are fixed with respect to the money supply
A
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If the Fed buys government securities, then
A) the quantity of money is not changed, just its composition. B) new bank reserves are created. C) the quantity of money decreases. D) bank reserves are destroyed. E) banks' excess reserves decrease.
The above figure depicts an economy with a short-run equilibrium
A) at full employment. B) below full employment. C) at higher than full employment. D) at zero unemployment
Debt held by the public and total debt are two different concepts
a. True b. False
Refer to the given table. Relative to column C, column D represents:Price Per UnitColumn A Units Per YearColumn B Units Per Year$205040$306050$407060$508070$609080
A. an increase in demand. B. a decrease in supply. C. a decrease in demand. D. an increase in supply.