Were the government to decree that henceforth all wages and other input prices are to be indexed to nominal aggregate demand, this ________ "coordination failure" of the macroeconomy and ________ business cycles

A) solves the, amplifies
B) solves the, dampens
C) creates a, amplifies
D) creates a, dampens

B

Economics

You might also like to view...

Predatory pricing

A) is extremely hard to document in the U.S. economy today. B) is most often practiced in the retailing industry. C) is not legal under U.S. law but is regularly practiced by foreign firms competing in the United States. D) is principally responsible for the decline of competition in the oil industry.

Economics

An asset is liquid if it

A) is of intrinsic value. B) can be exchanged for other goods and services. C) is a store of value. D) can be obtained or disposed of without losing much of its nominal value.

Economics