If a significant portion of firms in the economy does NOT adjust product prices, a predicted result according to new Keynesian theory is
A. real inflation cycles.
B. output dynamics.
C. inflation dynamics.
D. real business cycles.
Answer: C
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Which of the following goods is least likely to be in a market basket?
A. A missile B. A gallon of milk C. A pair of khaki pants D. A tank of heating oil
Suppose a case of French wine has a price of 1,500 euros. To a U.S. wine importer, its price falls from $300 to $280. This could happen as a result of the dollar ___________ against the euro, which means the euro has a ____________ dollar price
A) depreciating; higher B) depreciating; lower C) appreciating; higher D) appreciating; lower
Foreign outsourcing of service is commonly seen in economies that possess the skills and equipment required to produce those services for themselves
Indicate whether the statement is true or false
Persistent wage differentials between people having different skills violate the W = MRP ethic associated with the perfectly competitive market for labor
Indicate whether the statement is true or false