According to the new Keynesian theory, the widespread importance of small menu costs results in variations in aggregate demand causing both
A) smaller short-run adjustments in real GDP and immediate adjustment in the price level.
B) smaller short-run adjustments in real GDP and delayed adjustment in the price level.
C) greater short-run adjustments in the real GDP and immediate adjustment in the price level.
D) greater short-run adjustments in real GDP and delayed adjustment in the price level.
D
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In the original Austin Powers, Dr. Evil is cryogenically frozen for thirty years (from the late 1960s to the late 1990s). Upon his return he hatches a plan to extort one million dollars from various world governments. His henchmen are unimpressed
What type(s) of inflation have made Dr. Evil's proposed blackmail amount seem too small? A) cost-push inflation B) both cost-push and demand-pull inflation C) both cost-price and price-pull inflation D) demand-pull inflation
Your accountant tells you that if you can continue to earn the current interest rate on your balance of $750 for the next three years, you will have $944.78 in your account. If your accountant is correct, then what is the current interest rate?
a. 6 percent b. 7 percent c. 8 percent d. 10 percent
Suppose that the elasticity of demand for a product is 0.5 and price decreases by 20%. By what percentage will quantity demanded increase?
A. 0.5% B. 5% C. 10% D. 40%
A 4 percent reduction in the price of a product has zero effect on the dollar amount of consumer expenditure on the product. The price elasticity of demand is:
A. Zero B. Greater than zero C. Greater than zero but less than 1 D. Equal to 1