In the short-run, we assume that the money prices of goods and services are
A) temporarily fixed.
B) permanently fixed.
C) allowed to fluctuate.
D) equal to long-run prices.
E) fully employed.
A
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A statement that is often used to describe demand-pull inflation is ________.
A. "Too much money chasing too few goods." B. "A rising tide lifts all boats." C. "Money is easily earned, but not easily saved." D. "There is no such thing as a free lunch."
In 2006, the United States had
A) a surplus in the current account. B) a balance in the current account. C) a deficit in the current account. D) From 2006 data, it is too difficult to determine whether a surplus or a deficit existed in the current account. E) a positive balance of net financial flows.
If the market share of the largest firm in an industry is 50%, then theoretically, the highest possible Herfindahl-Hirschman Index for this industry would be
A. 2,500. B. 5,000. C. 10,000. D. 25,000.
The government imposes a price floor on wheat that is below the market price. You are asked to suggest a rationing scheme that will minimize the misallocation of resources. You suggest
A. using rationing coupons that can be resold. B. that no rationing system will be necessary. C. using a queuing system to compensate for the excess demand. D. using rationing coupons that cannot be resold.