Empirical evidence that changes in monetary policy do not cause rapid price adjustments ________

A) is consistent with the Keynesian emphasis on short-run economic fluctuations
B) suggests that policymakers need not worry much about inflation
C) remains limited and unconvincing
D) is consistent with the classical dichotomy
E) none of the above

A

Economics

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Suppose that the demand for lava lamps is elastic, and the supply of lava lamps is inelastic. A tax of $2 per lamp levied on lava lamps will increase the price paid by buyers of lava lamps by

A. $1 B. less than $1 C. between $1 and $2. D. $2

Economics

When Nablom's Bakery raised the price of its breads by 10 percent, the quantity demanded fell by 15 percent. What was the effect on sales revenue?

A) Sales revenue increased. B) Sales revenue remained unchanged. C) Sales revenue decreased. D) It cannot be determined without information on prices.

Economics