Keynesians argue that changes in wages will lag price level changes even if expectations are formed rationally because
A) workers have very little bargaining power compared with that of management.
B) only a small percentage of workers are unionized.
C) wages are often set by long-term contracts.
D) workers often have incorrect information.
C
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Which of the following is not an example of an economic trade-off that a firm has to face?
A) whether it is cheaper to produce with more machines or with more workers B) whether it should produce more of its product C) whether or not consumers will buy its products D) whether it is to outsource the production of a good or service
There are debt relief programs currently available for highly indebted poor countries
Indicate whether the statement is true or false
Refer to the graph shown. Assume the economy is in short-run equilibrium at point A below potential output. The government opts for an expansionary fiscal policy that shifts the AD curve from AD0 to AD1 in an attempt to pull the economy out of the recession. An economist with a functional finance view, who also recognizes that there will be a certain degree of crowding out, would conclude that the economy will likely end up at point:
A. A. B. B. C. C. D. D.