What are sticky wages?
a. Wages that employers will not increase
b. Wages that respond to changes in demand
c. Wages that do not respond to changes in demand
d. Wages that do not respond to changes in supply
c. Wages that do not respond to changes in demand
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Describe ways that governments can promote faster economic growth
What will be an ideal response?
Why do some firms choose not to file for a patent and instead try to keep the results of their research a trade secret?
A) because firms must disclose information about the product or process being patented in a patent application B) because a patent only gives the inventor exclusive rights to a product or process for 5 years C) because trade secrets provide the same exclusive legal rights to a product as a patent does D) because trade secrets are never divulged
Wage and price stickiness
A. creates a surplus or a shortage of real GDP. B. give rise to a vertical long-run aggregate supply curve. C. give rise to a vertical short-run aggregate supply curve. D. prevents the economy from producing its potential level of real GDP.
If actual reserves in the banking system are $40,000, excess reserves are $10,000, and checkable deposits are $240,000, then the legal reserve requirement is:
A. 10 percent. B. 12.5 percent. C. 20 percent. D. 5 percent.