Multiple Choice
Pessimism
Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time.
-Refer to Financial Crisis.If nominal wages are sticky,which of the following helps explains the change in output?
A) real wages fall,so firms choose to produce less
B) real wages fall,so firms choose to produce more
C) real wages rise,so firms choose to produce less
D) real wages rise,so firms choose to produce more
Correct Answer:
Verified
Correct Answer:
Verified
Q28: Figure 33-9. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2297/.jpg" alt="Figure 33-9.
Q29: Suppose the economy is in long-run equilibrium.If
Q30: Which of the following would cause stagflation?<br>A)aggregate
Q31: An increase in the price level and
Q32: An increase in the price level and
Q34: Which of the following would increase the
Q35: Pessimism<br>Suppose the economy is in long-run equilibrium.
Q36: Pessimism<br>Suppose the economy is in long-run equilibrium.
Q37: Which of the following affected aggregate demand
Q38: Which of the following is a lesson