When does an incomplete contract prove beneficial?

A contract may remain incomplete because the expected benefits of greater completeness
do not cover the costs of drafting it. In some situations an incomplete contract can discourage opportunistic behavior. Incompleteness may also be helpful if at the time the parties draft the agreement they do not know how they can best react to certain contingencies.

Economics

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A Keynesian model is one in which prices are sticky:

a. in the short run only. b. in the short run and in the long run. c. in the long run only. d. so that they never depend on the money supply.

Economics

Refer to Figure 26-7. Suppose the economy is in a recession and the Fed pursues an expansionary monetary policy. Using the static AD-AS model in the figure above, this would be depicted as a movement from

A) C to B. B) A to B. C) A to E. D) C to D. E) B to C.

Economics