Why are aggregate demand shocks not a good explanation of business cycles in the New Keynesian model?
A) The wage is not constant.
B) Employment does not fluctuate.
C) Prices in the model are procyclical.
D) Consumption is not procyclical.
C
Economics
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Which of the following goods and services would be excluded from the CPI?
a. Legal services b. Used cars c. French wines sold in the U.S. d. Restaurant meals e. Shares of stock in U.S. corporations
Economics
To maximize profits, a monopolist produces the quantity by which of the following?
a. Marginal revenue equals average total cost. b. Price equals marginal revenue. c. Marginal revenue equals marginal cost. d. Price equals marginal cost.
Economics