Multiple Choice
Business cycles disappear when firms
A) hold nominal wages constant as nominal demand changes.
B) hold prices constant as nominal demand changes.
C) change prices proportionately with nominal demand changes.
D) change wages proportionately with nominal demand changes.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q55: In the fooling model,should an expansion of
Q56: The "information barrier" that is the root
Q57: Which of the following countries has a
Q58: Which of the following is NOT a
Q59: The RBC approach has workers allocating their
Q61: Initially a firm pays a wage and
Q62: In the United States since the 1920s,there
Q63: Which of the following statements best describes
Q64: What all "New Classical" models have in
Q65: According to efficiency wage theory,a firm that