Gordon believes that the new Keynesian approach as opposed to other business cycle theories is preferred because
A) it explains information barriers and sticky wages.
B) it explains how workers are "fooled."
C) it explains wage and price stickiness assuming rational firms and workers.
D) it identifies the source of supply side shocks and slow SAS adjustment.
C
Economics
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The figure above shows a labor market. If this labor market is perfectly competitive, the wage rate is
A) $4 per hour. B) $6 per hour. C) $8 per hour. D) $10 per hour.
Economics
According to the quantity theory of money, nominal GDP will double if the money supply is
A. reduced threefold. B. reduced by one-half. C. tripled. D. doubled.
Economics