In the long run,
a) nominal wages rise more slowly than prices
b) output is independent of the price level
c) real wages are higher than money wages
d) a higher price level elicits a sustained increase in production
e) the aggregate demand curve is perfectly horizontal
c) real wages are higher than money wages
You might also like to view...
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
A time series graph reveals whether there is a ________ , which represents ________
A) trends in two variables; unrelated variables B) relationship between two variables; a trend in a variable C) cross-section relationship; a general tendency for the variables to rise or fall D) trend in a variable; a general tendency for the variable to rise or fall E) relationship between two variables; a cross-section relationship
If the U.S. Postal Service raised its first-class postage rate by 10 percent and found (to its surprise) total receipts from first-class mail service subsequently increased by 10 percent, the demand for first-class mail service would be
A) completely elastic. B) completely inelastic. C) greater than anticipated. D) unit elastic. E) upward sloping.
Monopolistic competition means
A) monopolies from several countries compete in the global market. B) a large number of firms producing homogeneous products. C) a large number of firms producing differentiated products. D) few firms producing differentiated products.