Prices that adjust slowly to their long-run equilibrium ________
A) help the economy to avoid economic fluctuations
B) call for policies that focus on short-run fluctuations
C) are conducive to maintaining low inflation
D) all of the above
E) none of the above
B
You might also like to view...
The aggregate demand curve shows the relationship between planned purchases of
A) all final goods and services and the price level. B) all final goods and services and interest rates. C) all final goods and services and total planned production. D) all final goods and services and nominal GDP.
The data in the table above are the U.S. balance of payments. What is the current account balance?
A) $0 B) $150 billion C) -$100 billion D) -$150 billion
Refer to Table 2-1. Assume Dina's Diner only produces sliders and hot wings. A combination of 20 sliders and 60 hot wings would appear
A) along Dina's production possibilities frontier. B) inside Dina's production possibilities frontier. C) outside Dina's production possibilities frontier. D) at the vertical intercept of Dina's production possibilities frontier.
The kinked demand curve model is based on the assumption that rival firms will match a price cut but ignore a price increase
a. True b. False Indicate whether the statement is true or false