Nominal rigidity is another term for:
a. sticky prices.
b. fixed exchange rates.
c. menu prices.
d. the trilemma.
Ans: a. sticky prices.
You might also like to view...
Use the information in the table above plus the fact that indirect taxes less subsidies are $10 billion and depreciation is $30 billion to calculate the value of GDP
A) $180 billion B) $150 billion C) $140 billion D) $130 billion
For individuals who are holding money or fixed dollar value assets, inflation has the effect of: a. improving their ability to purchase goods and services with those dollars. b. reducing their ability to purchase goods and services with those dollars. c. increasing the purchasing power of those dollars
d. demonstrating the interest rate effect.
Goods produced that go into inventories are
a. not counted in GDP. b. only counted in GDP when they are ultimately sold. c. counted in GDP even though they are not sold. d. counted if they completely depreciate within the calendar year.
If corn and wheat are alternative pursuits for a farmer, a change in the supply of corn will take place when, ceteris paribus,
A. The price of wheat changes. B. The demand for corn changes. C. Consumers want to buy more corn at the same price. D. The price of corn changes.