Which of the following mechanisms helps output to return to potential after a demand shock?
a. Change in business mentality
b. Change in nominal wage rate
c. Large changes in the capital stock
d. Inability of the price level to change
e. Change in inventories
B
Economics
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Ramsey pricing avoids cross subsidy
Indicate whether the statement is true or false
Economics
The effect of automatic stabilizers on the business cycle is to: a. make upswings larger and downswings smaller. b. make upswings smaller and downswings larger. c. make both upswings and downswings smaller. d. eliminate fiscal drag
e. make both upswings and downswings larger.
Economics