If prices are "sticky" in the short run, then
A.
The economy will respond to demand shocks primarily through changes in output and employment
B.
The economy will respond to demand shocks primarily through changes in prices and inflation
C.
Prices will adjust to equalize the quantities demanded and supplied of goods and services
D.
Unemployment will not change in response to a demand shock
A.
The economy will respond to demand shocks primarily through changes in output and employment
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Consider the market for credit. When the supply of credit increases while the demand for credit remains unchanged,
A) the interest rate will decrease and the amount of credit provided in the market will increase. B) the interest rate will increase and the amount of credit provided in the market will increase. C) the interest rate will decrease and the amount of credit provided in the market will decrease. D) the interest rate will increase and the amount of credit provided in the market will decrease.
Suppose the government spending multiplier is 2. The federal government cuts spending by $40 billion. What is the change in GDP if the price level is not held constant?
A) a decrease of less than $80 billion B) an increase equal to $80 billion C) an increase of greater than $80 billion D) an increase of less than $80 billion E) a decrease of more than $80 billion
Which of the following is true about games in which people have different information?
A. Participants in these games can sometimes learn important information from the behavior of others. B. Participants in these games never act in a way contrary to his immediate interests. C. Participants in these games always act in a way contrary to his immediate interests. D. These games always have a Nash equilibrium.
Quantity of Frozen Latte-On-A-Stick SuppliedPriceFlo's SupplyRita's Supply10020334649951512
Refer to Table 4.1, which shows Flo's and Rita's individual supply schedules for frozen latte-on-a-stick. Assuming Flo and Rita are the only suppliers in the market, if the market quantity supplied is 18, the price must be:
A. $2. B. $3. C. $4. D. $5.