New Keynesian inflation dynamics can account for sluggish responses of
A. inflation to changes in aggregate supply.
B. real Gross Domestic Product (GDP) to changes in aggregate demand.
C. real Gross Domestic Product (GDP) to changes in aggregate supply.
D. inflation to changes in aggregate demand.
Answer: D
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Which is true with respect to the demand data confronting a monopolist?
A. Demand is perfectly price inelastic. B. Price increases as the output of the firm increases. C. Marginal revenue is less than price. D. Marginal revenue increases as price decreases.
Economic efficiency entails
A) producing a given amount of output with the most expensive mix of inputs. B) producing a given amount of output with the least number of inputs. C) producing a given amount of output with the most inputs. D) producing a given amount of output with the cheapest mix of inputs.
International trade under a floating exchange rate system
A. has been trouble-free owing to the stabilizing role of speculators in the currency markets. B. has suffered from so many problems that the volume of trade has declined significantly. C. exposes businesses to unavoidable risks when exchange rates change. D. has been subject to wild runs on currencies that were on the verge of devaluation.
The term "import" refers to:
a. a purchase of goods or services from another country. b. a business transaction between two or more domestic firms. c. a sale of goods or services to another nation. d. a tax on foreign merchandise. e. a trade agreement between two industrial countries.