In the short run ________
A) the more flexible wages and prices are, the more inflation responds to the output gap
B) the more sticky wages and prices are, the more difficult to tell the difference between the short run and long run aggregate supply curves
C) if wages and prices are sticky, aggregate output is always at its potential level
D) all of the above
E) none of the above
A
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Answer the following statement true (T) or false (F)
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The Herfindahl-Hirschman Index in this industry is A) 100. B) 900. C) 1,350. D) 2,400.
The United States bans most imports from all of the following countries except
A) China. B) Cuba. C) North Korea. D) Iran.
Historically, the excess reserves of banks have been ________ relative to checkable deposits, but during the crisis of 2008 the excess reserves of banks ________. (Fill in the blanks)
a. large; declined sharply b. small; fell sharply c. small; increased sharply d. large; increased sharply