Multiple Choice
The efficiency wage theory of aggregate supply implies that
A) the AS-curve is vertical
B) paying employees higher wages won't induce them to work harder
C) even unanticipated changes in monetary or fiscal policy have no effect on the level of output
D) since the cost of changing wages and prices is low, wages can easily be adjusted in proportion to price changes to maintain full employment
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q15: The upward-sloping AS-curve will shift eventually to
Q16: If we look at the sacrifice ratios
Q17: The misery index is constructed by<br>A)adding the
Q18: Which of the following is NOT true
Q19: In the AD-AS model with an upward-sloping
Q21: A change in the misery index<br>A)may indicate
Q22: What sort of event could lead to
Q23: If nominal wage rates were completely flexible,
Q24: Which of the following is NOT used
Q25: If policy makers want to get the