In the aggregate demand and aggregate supply model, sticky wages, sticky prices, and misperceptions about relative prices
a. have temporary effects.
b. explain why the short run aggregate supply curve might shift.
c. explain why the aggregate demand curve is downward sloping.
d. explain monetary neutrality.
a
You might also like to view...
The fact that assets of the political opponents of the U.S. were frozen in U.S. banks
A) was challenged as unconstitutional. B) lead to an increased amount of funds being placed in Eurobanks. C) lead to a violation of the Law of One Price. D) lead to the Cold War. E) lead to a violation of Regulation Q.
Price tags attached to goods for purchase at a store would be an example of money's role as a
A) medium of exchange. B) store of value. C) unit of account. D) none of the above
Suppose a tax of $1 per unit is imposed on a good. The more elastic the demand for the good, other things equal,
a. the larger is the decrease in quantity demanded as a result of the tax. b. the smaller is the tax burden on buyers relative to the tax burden on sellers. c. the larger is the deadweight loss of the tax. d. All of the above are correct.
A disadvantage of the corporate form of business organization is
A) double taxation. B) limited access to capital. C) that the corporation can only do business in the state where it was incorporated. D) unlimited liability for shareholders.