Multiple Choice
Which of the following explains why the inflation rate is slow to adjust over time?
A) People can perfectly predict the inflation rate.
B) There are high menu costs of changing prices.
C) Workers respond to nominal wages instead of real wages.
D) Too many shocks exist in an economy.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q46: If the growth rate of the money
Q47: An increase in the growth rate of
Q48: An unexpected outward shift of the economy's
Q49: In the AD-AS model,changes in the growth
Q50: Which of the following best describes the
Q52: The aggregate demand curve shows all the
Q53: As a result of an increase in
Q54: The aggregate demand curve has a slope
Q55: If the growth rate of money is
Q56: The short-run aggregate supply curve slopes upward