If the average interval between firms' price adjustments is relatively long
A. a reduction in aggregate demand will cause a relatively short-lived reduction in real Gross Domestic Product (GDP).
B. an increase in aggregate demand will cause a relatively short-lived increase in real Gross Domestic Product (GDP).
C. an increase in aggregate demand will cause a relatively long-lived increase in real Gross Domestic Product (GDP).
D. none of these.
Answer: C
You might also like to view...
An increase in the employment tax will have no effect on output if the labor supply curve
A) is perfectly vertical. B) has a positive slope. C) is perfectly horizontal. D) has a negative slope.
For a business, opportunity cost measures
A) only the cost of labor and materials. B) only the implicit costs of the business. C) the cost of all the factors of production the firm employs. D) only the explicit costs the firm must pay. E) all of the firm's costs including its normal profit and its economic profit.
U.S. government regulation of social and economic activity
A) only began after World War II. B) costs less now than it did in the 1980s. C) has increased steadily since 1970. D) is confined to antitrust law.
The most significant kind of federal subsidy to railroads was
a. loans from the U.S. government. b. reduced corporate income taxes. c. land grants. d. direct payments based on the number of miles of tracks laid.