In response to a positive technology shock, which prediction of the sticky price model is difficult to reconcile with the data?
A) Output increases.
B) Employment decreases.
C) The price level decreases.
D) Money is procyclical.
A
Economics
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What will be an ideal response?
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When a corporation decides to include its own corporate stock as part of the compensation for its employees, it is trying to solve the
a. adverse selection problem. b. principal-agent problem. c. lemons problem. d. signaling problem.
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