Multiple Choice
The price misperception model predicts:
A) the price level will be countercyclical and in the data the price level is countercyclical.
B) the nominal quantity of money is countercyclical while 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
Q1: On what types of prices do households
Q2: An increase in the money supply and
Q3: We would expect households to have incomplete
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
Q10: While price misperceptions can cause an increase
Q11: Price misperception during a positive technology shock