Multiple Choice
Each of the three models of short-run aggregate supply is based on some market imperfection.In the imperfect-information model,the imperfection is that:
A) some firms do not adjust their prices instantly to changes in demand.
B) contracts and arrangements may prevent nominal wages from adjusting rapidly to changing economic conditions.
C) firms confuse changes in the overall level of prices with changes in relative prices.
D) the real wage adjusts to bring labour supply and labour demand into equilibrium.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Assume that an economy is initially operating
Q37: The percentage of a year's real GDP
Q44: Assume that an economy is initially at
Q52: The assumption of adaptive expectations for inflation
Q62: The sacrifice ratio measures the:<br>A) number of
Q92: If the short-run Phillips curves are nonlinear,with
Q93: If the short-run aggregate supply curve is
Q95: For each of the two models of
Q100: The tradeoff between inflation and unemployment does
Q101: If the equation for a country's