The new classical model has as its central idea that
A) workers and firms have rational expectations.
B) wage and price stickiness explain fluctuations in real GDP.
C) shifts in aggregate demand have no impact on real GDP.
D) the Federal Reserve should adopt a monetary growth rule.
A
You might also like to view...
A firm will not hire additional workers once
A) it earns accounting profits. B) the additional cost of a worker equals the additional revenue from the worker. C) total product is rising. D) the company reaches its breakeven output level.
You own two different energy drink brands: "Blue Cow" and "600 minute energy.". If you reduce the price on "Blue Cow", a. Sales of "Blue Cow" would increase, without any changes in sales for "600 minute energy."
b. Sales of both "Blue Cow" and "600 minute energy.". would increase c. Sales of "Blue Cow" would increase, but the sales of "600 minute energy" would be cannibalized d. Neither "Blue Cow" nor "600 minute energy" would see an increase in sales.