In the short run, nominal wages and other input prices are assumed to be:
A. Unresponsive to product price-level changes, but in the long run they are assumed to be responsive
B. Unresponsive to product price-level changes, and in the long run they are assumed to be unresponsive also
C. Responsive to product price-level changes, but in the long run they are assumed to be unresponsive
D. Responsive to product price-level changes, and in the long run they are assumed to be responsive also
A. Unresponsive to product price-level changes, but in the long run they are assumed to be responsive
You might also like to view...
If the money supply increases this will cause the interest rate to rise, investment to fall and GDP to fall
a. True b. False Indicate whether the statement is true or false
If aggregate supply keeps decreasing while aggregate demand does not change, there will come at time when
a. demand-dull inflation will occur b. cost-push inflation will occur c. demand-push inflation will occur d. cost-pull inflation will occur e. the economy will reach full employment
Which of the following groups believes that the private sector takes actions based on rational expectations to offset policy actions?
A. New classical economists. B. Keynesians. C. Marxists. D. Supply-siders.
Secondary reserves consist of
A. government securities. B. cash and securities. C. cash, required reserve deposits, and securities. D. cash only.