Sticky prices can result from all of the following except:
a. market structure.
b. long-term contracts between buyers and sellers.
c. setting prices on the basis of costs when wages are sticky.
d. expansionary monetary policy.
Ans: d. expansionary monetary policy.
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Marginal factor cost (MFC) is the same as the wage rate for a monopsonist
a. True b. False Indicate whether the statement is true or false
?A short-run aggregate supply curve (SRAS) assumes:
A. ?the CPI is fixed. B. ?each point on the SRAS is potential real GDP. C. fixed or sticky nominal wages. D. ?nominal wages vary directly with price changes.
To test their theories, economists usually have to
A. conduct experiments that involve people who do not behave rationally. B. set up careful laboratory experiments with all variables controlled. C. first examine theory and compare it with what happened in the past in the real world. D. use only models that have a proven record of success.
The difference between the actual price that a producer receives and the minimum acceptable price the producer is willing to accept is called the producer:
A. Revenues B. Surplus C. Costs D. Utility