In the short run
a. wages are slow to adjust to changes in supply and demand
b. most producers will reduce their production levels when inflation rises
c. business sales revenues rise slower than costs, when inflation occurs
d. all
Ans: a. wages are slow to adjust to changes in supply and demand
You might also like to view...
Alberto purchases ten cups of coffee a week. The amount of money that he holds to purchase ten cups of coffee is the
A) asset demand for money. B) precautionary demand for money. C) money balance demand for money. D) transactions demand for money.
In the figure above, to use fiscal policy to move the economy back to potential GDP, the government must increase government expenditure by ________ $1 trillion and/or decrease taxes by ________ $1 trillion
A) more than; more than B) less than; less than C) less than; more than D) exactly; exactly E) more than; less than The figure above shows an economy aggregate demand curve and aggregate supply curves.