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    Exam 17: New Classical Macro and New Keynesian Macro
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    "Input-Output" Macroeconomics Stresses That a Change in Nominal Aggregate Demand
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"Input-Output" Macroeconomics Stresses That a Change in Nominal Aggregate Demand

Question 2

Question 2

Multiple Choice

"Input-output" macroeconomics stresses that a change in nominal aggregate demand ________ produces an equal-proportional change in every firm's marginal cost,so that firms should consider indexing their price to nominal aggregate demand a very ________ pricing strategy.


A) need not,safe
B) need not,risky
C) must,safe
D) must,risky

Correct Answer:

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