Multiple Choice
The price misperception model predicts:
A) the price level will be procyclical while in data the the price level is countercyclical.
B) the nominal quantity of money is procyclical and in the data money is weakly procyclical.
C) the real wage is countercyclical while in the data the real wage is procyclical.
D) all of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q9: While price misperceptions can cause an increase
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,
Q15: We would expect households to have the
Q16: If the nominal wage is €10 per
Q17: If the nominal wage rises from €10
Q18: The real effect of a given monetary
Q19: If the nominal wage is €10 per