The phrase "sticky prices" refers to the prices of:
A. some inputs taking longer to adjust to the price level than the output it creates.
B. some output taking longer to adjust to the price level than the inputs used to create it.
C. more durable goods "sticking," and not adjusting to the price level.
D. consumer goods not adjusting to the price level.
A. some inputs taking longer to adjust to the price level than the output it creates.
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Which of the following products comes closest to having a perfectly inelastic demand?
A) bus rides B) cholesterol medication in general C) gasoline D) iPhones
Monetarists argue that business fluctuations are caused by
A. excessive government spending. B. ups and downs in the growth of the money supply. C. changes in tax rates. D. changes in transfer payments.
The demand for money curve
A. is positively related to the interest rate. B. shows the relationship between the quantity of money balances demanded and the interest rate. C. shows the relationship between money demanded and open market operations. D. varies inversely with the supply of money.
If the price of the Brazilian real is $0.1 and a U.S. resident purchases a Brazilian-manufactured item for 10,000 real, there will be
A. a quantity supplied of 10,000 real as well as a quantity demanded of 10,000 real. B. a quantity demanded of 10,000 real and a quantity supplied of $1,000. C. a quantity demanded of 10,000 real, but we cannot determine the effect in the market for dollars. D. a quantity demanded of 10,000 real and a quantity supplied of $10,000.