Multiple Choice
While price misperceptions can cause an increase in labour supply and GDP in the short-run, in the long run:
A) money is no longer neutral in the model.
B) money negatively impacts real GDP.
C) labour supply returns to its initial position.
D) all of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q4: The price misperception model predicts:<br>A)the price level
Q5: Price misperception during a positive technology shock
Q6: If the perceive real wage goes up,
Q7: An increase in the money supply:<br>A)can affect
Q8: If the nominal wage is €10 per
Q10: While price misperceptions can cause an increase
Q11: Price misperception during a positive technology shock
Q12: In the current period a perceived increase
Q13: If the perceive real wage goes up,
Q14: The price misperception model predicts:<br>A)the price level