Multiple Choice
Economies usually face recessions for long periods of time because:
A) the pessimism in the economy slows down the process of adjustment.
B) wages and prices are rigid in nature.
C) firms tend to streamline their operations every year.
D) governments tend to avoid making tough decisions.
E) wages fall faster than the price level.
Correct Answer:

Verified
Correct Answer:
Verified
Q14: A change that shifted the long-run aggregate
Q18: According to the misperception effect, firms increase
Q20: If some non-price level determinant causes total
Q21: Which of the following would be true
Q22: If there was no real wealth or
Q24: Which of the following would shift both
Q48: An unexpected increase in aggregate demand results
Q61: Stagflation could be caused solely by a
Q109: Discuss the impact of efficiency wages on
Q177: Higher interest rates will tend to reduce