The fact that some resource prices are fixed by contracts help explain why firms:
a. increase output in the short run when the price level increases
b. keep production levels constant in the short run when the price level decreases.
c. sell output in the short run at fixed prices.
d. increase output in the long run when the price level increases.
e. decrease production when nominal wages fall in the long run.
a
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Suppose the economy currently has an inflationary ga
A) decrease aggregate demand, decrease prices, and decrease real GDP. B) increase short-run aggregate supply, decrease prices and increase real GDP. C) increase short-run aggregate supply, decrease in prices and decrease in real GDP. D) decrease aggregate demand, decrease prices, and increase real GDP.
The percentage of the people of working age who have jobs is called the ________
A) labor force B) inverse of the unemployment rate C) employment-to-population ratio D) employment-to-working-age-population ratio
What type of economics would most typically deal with aggregates?
A) macroeconomics B) microeconomics C) labor economics D) environmental economics
Which of the following would not cause an increase in the demand for cheese?
a. a decrease in the price of crackers, which are consumed with cheese b. an increase in the income of cheese consumers, assuming that cheese is a normal good c. an increase in the population d. a technological advance that makes it cheaper to produce cheese