If Best Lights, Lights R Us, and Bright Lights are all competing in the light bulb market and Best Lights consistently is the first to change prices, Best Lights might be ________.
A) offering to be the price leader
B) signaling to the other firms to consistently lower their prices
C) signaling to the other firms to consistently raise their prices
D) signaling to the other firms to consistently maintain their prices
A) offering to be the price leader
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
The new Keynesian models, are examples of
A) market-clearing, wage rigidity models. B) non-market-clearing, wage rigidity models. C) imperfect information, wage rigidity models. D) perfect information, non-clearing market models.
Which following segment(s) of the aggregate supply curve represents the Phillips curve trade-offs?
a. horizontal segment b. horizontal and the intermediate segments c. intermediate segment d. intermediate and the vertical segments e. vertical segment
Time lags
What will be an ideal response?