_____ school of thought would most likely be associated with the statement: "When wages are rigid, changes in output result in small changes in goods market prices and a relatively flat aggregate supply curve."
a. The traditional Keynesian
b. The modern Keynesian
c. The Monetarist
d. The classical
e. The new classical
a
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The figure above shows the market for milk in Cowland. A subsidy paid to producers of $1 per gallon of milk is introduced. If there are no external costs and no external benefits, the marginal benefit of the last gallon of milk consumed is
A) $3.50 a gallon. B) $4.00 a gallon. C) $4.50 a gallon. D) $5.00 a gallon.
All of the following cause a shift in the demand curve EXCEPT a change in the
A) price of related goods. B) price of the good or service. C) consumer income. D) number of consumers.
In the real business cycle theory, business cycle contractions begin as a result of changes in
A) aggregate GDP. B) aggregate spending. C) aggregate demand. D) aggregate consumption. E) long-run aggregate supply.
How might a similar pie chart drawn up for the GDP deflator compare?
a. There would be more segments to the pie and the proportions would vary.
b. There would be the same number of segments, but the proportions would vary.
c. There would be fewer segments to the pie and the proportions would vary.
d. There would be the same number of segments and the proportions would remain the
same.