The new Keynesian sticky-price theory indicates that an increase in aggregate demand generates
A) a speedy rise in real GDP but a sluggish increase in the price level.
B) a speedy rise in the price level but a sluggish increase in real GDP.
C) sluggish increases in both real GDP and the price level.
D) rapid increases in both real GDP and the price level.
A
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Suppose the nominal interest rate is 5% and the rate of inflation is 5%. The real interest rate is therefore
A) 0%. B) 1%. C) 5%. D) 6%.
Monopoly is unlike perfect competition in that ______.
a. a monopolist's price is greater than marginal cost b. there are no barriers to entry into a monopoly industry c. a monopolist earns an economic profit only if its price is greater than ATC d. all of the preceding are ways in which monopoly is unlike perfect competition e. a monopolist's price is greater than marginal cost and there are no barriers to entry into a monopoly industry, but not a monopolist earns an economic profit only if its price is greater than ATC, are ways in which monopoly is unlike perfect competition