In macroeconomic models, prices are assumed to be completely inflexible in:
A.
The very short run only
B.
The short run and remains so over time
C.
The very long run
D.
Situations when the changes in demand look to be permanent
A.
The very short run only
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Assume that it is predicted that for the years after you graduate from college, the entire economy will experience a long period of prosperity when incomes grow rapidly
What type of industry would be the best for you to find employment if this prediction is correct? An industry that produces a product that is A) income elastic. B) income inelastic. C) inferior. D) a substitute good. E) none of these industries
Net benefits of an alternative equal:
A) benefits minus costs. B) benefits divided by costs. C) the sum of benefits and costs. D) the product of benefits and costs.
Many East Asian currencies during the 1990s were
a. allowed to float freely b. pegged to the Japanese yen c. pegged to the U.S. dollar d. pegged to gold e. none of the above
Other things the same, if the exchange rate changes from .8 euros per dollar to .9 euros per dollar, the dollar
a. depreciates so U.S. goods become less expensive relative to foreign goods. b. depreciates so U.S. goods become more expensive relative to foreign goods. c. appreciates so U.S. goods become less expensive relative to foreign goods. d. appreciates so U.S. goods become more expensive relative to foreign goods.