Multiple Choice
According to the sticky-price model, other things being equal, the greater the proportion, s, of firms that follow the sticky-price rule, the ______ the ______ in output in response to an unexpected price increase.
A) greater; increase
B) smaller; increase
C) greater; decrease
D) smaller; decrease
Correct Answer:
Verified
Correct Answer:
Verified
Q7: If the short-run aggregate supply curve is
Q8: An economy must sacrifice 12 percent of
Q9: According to the sticky-price model, output will
Q10: Assume that the sacrifice ratio for an
Q11: The Phillips curve analysis described in Chapter
Q13: Each of the two models of short-run
Q14: Along an aggregate supply curve, if the
Q15: In the case of cost-push inflation, other
Q16: According to the natural-rate hypothesis, output will
Q17: All of the following are exogenous variables