Keynesians think the price level adjusts ________ to restore general equilibrium and they usually use ________ models.
A. quickly; aggregate
B. quickly; microfoundations
C. slowly; microfoundations
D. slowly; aggregate
Answer: D
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Foreign aid can take the form of
a. only money, capital goods, or technical assistance b. only capital goods, technical assistance, or food c. money, capital goods, technical assistance, or food d. only money, technical assistance, or food e. only technical assistance or food
The price elasticity of demand measures the
a. magnitude of the response in quantity demanded to a change in price. b. direction of the shift in the demand curve in response to a market event. c. size of the shortage created by the increase in demand. d. responsiveness of quantity demanded to a change in income.
The price elasticity of demand measures the responsiveness of consumers to changes in the price of a product.
Answer the following statement true (T) or false (F)
According to real business cycle theorists, if the long-run aggregate supply (LRAS) curve shifts to the left, Real GDP __________, the price level __________, the demand for labor __________, money wages __________, real wages __________, and workers choose to work __________
A) falls; falls; rises; fall; fall; less B) falls; rises; rises; fall; rise; more C) falls; rises; falls; fall; fall; less D) rises; rises; falls; fall; rise; more E) rises; falls; rises; fall; fall; more