Multiple Choice
Each of the two 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 labor supply and labor demand into equilibrium.
Correct Answer:
Verified
Correct Answer:
Verified
Q74: In the 1960s, in the United States:<br>A)
Q75: Assume that people form expectations rationally and
Q76: The imperfect-information model assumes that producers find
Q77: a. What is the sacrifice ratio?<br>b.
Q78: What is meant by the "cold turkey
Q80: Use the following to answer questions
Q81: The imperfect-information model bases the difference in
Q82: Assume that an economy is initially at
Q83: If the equation for a country's
Q84: The Phillips curve expresses a short-run link:<br>A)