The new Keynesian sticky-price theory indicates that an increase in aggregate demand generates
A) a speedy rise in real GDP but a sluggish increase in the price level.
B) a speedy rise in the price level but a sluggish increase in real GDP.
C) sluggish increases in both real GDP and the price level.
D) rapid increases in both real GDP and the price level.
A
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A $1000 face value coupon bond with a $60 coupon payment every year has a coupon rate of
A) .6 percent. B) 5 percent. C) 6 percent. D) 10 percent.
When an investor buys shares of stock, those stocks must be held for a specified period of time before they can be sold
Indicate whether the statement is true or false
The figure below shows a situation where the producers of Good X are forming an international cartel. Here, MR = Marginal Revenue, and MC = Marginal Cost. The cartel will set a monopoly price for its output.
By how much would the consumer surplus fall after the formation of the cartel?
A. $5 billion B. $50 billion C. $15 billion D. $20 billion
A graph shows the quantity of corn on the vertical axis and the quantity of steel on the horizontal axis. What is the proper interpretation of a horizontal line at a particular quantity for corn that is parallel to the horizontal axis of the graph?
What is the slope of the horizontal line? Please provide the best answer for the statement.