With sticky nominal wages an unexpected decline in aggregate demand can be expected to cause.
What will be an ideal response?
Both price and Real decrease in the Short-Run
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Which of the following statements is true of growth in the U.S. economy from 1950 to 2007?
A) Growth resulting from physical capital > growth resulting from technology > growth resulting from human capital B) Growth resulting from technology > growth resulting from physical capital > growth resulting from human capital C) Growth resulting from human capital > growth resulting from technology > growth resulting from physical capital D) Growth resulting from technology > growth resulting from human capital > growth resulting from physical capital
Why is real GDP a more accurate measure of the level of production in an economy than nominal GDP? Explain with an example
What will be an ideal response?
If the economy is suffering a recession, inventories are probably falling
a. True b. False Indicate whether the statement is true or false
Refer to the above diagram. The firm will shut down at any price less than:
A. P1.
B. P2.
C. P3.
D. P4.