What does the coefficient a in the new classical expression for short-run aggregate supply represent?
A) the full employment level of output
B) the price level in the previous period
C) how much output responds when the actual price level differs from the expected price level
D) how much the price level responds when the actual level of output differs from the full employment level of output
C
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Price controls often generate
A) more efficient markets. B) black markets. C) rapid adjustment to market-clearing prices. D) greater price flexibility.
Based on the circular flow model, money flows from households to businesses in:
a. factor markets. b. product markets. c. neither factor nor product markets. d. both factor and product markets.
Empirical evidence suggests that the federal budget has remained more or less in surplus between 1990 and 2002
a. True b. False Indicate whether the statement is true or false
A given increase in demand will raise the equilibrium quantity exchanged: a. unless supply is perfectly inelastic
b. more in the long run than in the short run. c. in the market for normal goods. d. all of the above