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 does not affect real GDP.
C) labour supply falls by more than its initial increase.
D) all of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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
Q9: 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
Q15: We would expect households to have the