If a contractionary monetary policy reduces nominal income in the short run, but not real income, it must be true that prices:
A. are completely inflexible.
B. are at least partially flexible.
C. are perfectly flexible.
D. have not fully adjusted to the change in aggregate demand.
Answer: C
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When deciding what price to charge customers, a firm may choose to charge different prices based on customers'
a. Age b. Willingness to pay c. Location d. All of the above
Which of the following questions would economists most likely disagree about?
a. What will be the effect of the new minimum wage on the sales of a product? b. How much should a company increase the price of a product? c. How much will demand increase for a product if the price decreases by 2 percent? d. What will be the increase in production with new technology in place?
A nation's GDP is
A. The total amount of money in circulation. B. The total market value of all intermediate goods and services. C. The sum of value added at some stages of the production process. D. C + I + G + (X - M).
Savings banks and savings and loans are regulated by a combination of agencies which includes all of the following except:
A. The Federal Reserve System. B. The Comptroller of the Currency. C. state authorities. D. The Federal Deposit Insurance Corporation.