In an economic downturn, sticky wages and prices reduce the economy's speed of adjustment because
A) hyperinflation will likely occur.
B) businesses are unable to adjust quickly to changes in aggregate demand.
C) they cause deflation.
D) union workers would likely quit and look for work elsewhere.
B
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Assume that both the United States and Germany produce beef and computers. The U.S. can produce 200 computers or 1,000 pounds of beef per day. Germany can produce 500 computers or 250 pounds of beef per day. Graph the PPCs for each country, putting computers on the horizontal axis. Then identify the slopes of the PPCs. What does the slope represent?
What will be an ideal response?
Which of the following statements about a monopolistically competitive firm is FALSE?
A) It tries to differentiate its product from that of competitors. B) It may earn short-run economic profits. C) It produces the quantity at which MC=MR. D) It sets price like a perfectly competitive firm.
One of the basic differences between social and economic regulations is that
A. economic regulations cover only particular industries while social regulations apply to all firms in the economy. B. social regulations only apply to non-profit organizations while economic regulations apply only to for-profit organizations. C. economic regulations focus on the banking industry while social regulations focus on monopolies. D. economic regulations only apply to financial institutions while social regulations apply to a greater variety of institutions.
Give the most important source of revenue for local governments and their most important expenditure
What will be an ideal response?