Multiple Choice
In the new classical view, firms and workers
A) adjust their wages and prices, even in the short run.
B) do not adjust their wages and prices in the short run because they have imperfect information about changes in the price level.
C) increase their output when the price level is lower than expected.
D) fail to incorporate expectations of changes in the money supply into their forecasts of the aggregate price level.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: In terms of the AD-AS model, the
Q8: According to the real business cycle model,<br>A)prices
Q9: In the new Keynesian approach, an increase
Q10: Ben Bernanke and Alan Blinder were able
Q11: Which of the following is true of
Q13: Ben Bernanke and Alan Blinder found evidence
Q14: The Fed decides to stimulate the economy
Q15: Which school of thought believes that the
Q16: Which of the following statements concerning stabilization
Q17: Business cycles typically last<br>A)from several months to