The stickiness of wages and prices will cause

A) changes in aggregate demand to have short-run effects on real GDP.
B) changes in aggregate demand to have no short-run effects on real GDP.
C) changes in aggregate demand to have long-run effects on real GDP.
D) changes in aggregate demand to have both short-run and long-run effects on real GDP.


A

Economics

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Suppose the marginal product of labor is 8 and the marginal product of capital is 2. If the wage rate is $4 and the price capital is $2, then in order to minimize costs the firms should use:

a. More capital and less labor B. More labor and less capital c. Three times more capital than labor d. None of the statements associated with this question are correct

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Refer to Table 8.2. If Sherry produces one pair of earrings, her total variable costs are A) $50. B) $100. C) $150. D) indeterminate from this information.

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When disposable income is 2000, how much is saving?

Economics