Price flexibility is a key feature of ________
A) traditional Keynesian theory
B) new Keynesian theory
C) real business cycle theory
D) traditional Keynesian, new Keynesian and real business cycle theory
C
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Monopolistic competition differs from monopoly because in monopolistic competition
A) firms maximize profits. B) firms set marginal revenue equal to marginal cost to maximize profit. C) firms are free to enter and exit. D) All of the above are differences between monopoly and monopolistically competitive firms.
Consider an economic policy regime in which rules are well-known but frequently ignored. Which of these statements is true?
A) This regime might work in the long-run, but is unlikely to produce good outcomes in the short run. B) Policymakers in this regime might find that rules are being broken with increasing frequency. C) This regime is more likely to be supported by nonactivist, than by activist policymakers. D) This regime is more likely to result in high unemployment than in high inflation. E) This regime is unlikely to produce large government budget deficits.
The economy of Atlantis produces just ten goods and services; if it were a money economy there would be _____ prices; if it were a barter economy there would be _____ prices.
A. less than 10; 10 B. 10; 10 C. 10; less than 10 D. 10; more than 10
Which of the following would NOT be an impact of tariffs imposed on foreign cars?
A. Sales of foreign cars decline B. Domestic car prices decline C. American jobs are protected D. Tax revenue is generated for the government