When wages and prices are completely flexible ________
A) inflation is determined by expected inflation and price shocks
B) labor hoarding occurs
C) unemployment is disconnected from the real economy
D) all of the above
E) none of the above
A
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The required reserve ratio is 10 percent and Charlie deposits $3,000 in her checking account. The bank must
A) decrease reserves by $300. B) decrease reserves by $3,000. C) increase reserves by $3,000. D) increase reserves by $300. E) not change its reserves until Charlie decides to withdraw her funds.
The figure above illustrates that if this country wishes to have F2 - F1 additional food by moving from point A to point B, it will
A) have to find additional workers, because the country already is operating on its production possibilities frontier. B) be unable to do so until additional technological progress is made. C) have to sacrifice C1 - C2 clothing in order to free the resources necessary to produce the additional food. D) require that all the unemployed resources in the country be put to work.
An increase in the liquidity of corporate bonds, other things being equal, shifts the demand curve for corporate bonds to the ________ and the demand curve for Treasury bonds shifts to the ________
A) right; right B) right; left C) left; left D) left; right
With respect to real per capita incomes, the United States' position
a. as leader has reversed with the United Kingdom since 1980. b. as leader has reversed with Canada since 1980. c. as leader has reversed with Sweden since 1980. d. has not changed much since 1980.