Multiple Choice
The shorter is the interval between firms' price adjustments,
A) the greater is the scope for activist policies to stabilize the economy.
B) the smaller is the scope for activist policies to stabilize the economy.
C) a given unexpected increase in aggregate demand will cause a larger increase in output.
D) a given unexpected increase in aggregate demand will cause a smaller increase in the price level in the short run.
Correct Answer:
Verified
Correct Answer:
Verified
Q210: Real business cycle theory explains changes in
Q211: Suppose a constitutional amendment is passed that
Q212: In the aggregate supply-aggregate demand model, if
Q213: According to the policy irrelevance proposition, the
Q214: A hypothesis that assumes that people combine
Q216: The rational expectations hypothesis suggests that<br>A) unanticipated
Q217: Economists who favor policy activism argue that
Q218: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -In the above
Q219: Costs of renewing contracts or printing new
Q220: An economist who would most likely use