The shorter is the interval between firms' price adjustments,
A) a given unexpected increase in aggregate demand will cause a larger increase in output.
B) the greater is the scope for activist policies to stabilize the economy.
C) the smaller is the scope for activist policies to stabilize the economy.
D) a given unexpected increase in aggregate demand will cause a smaller increase in the price level in the short run.
C
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The real wage rate measures the
A) quantity of goods and services that an hour of work will buy. B) average weekly earnings in dollars of a worker. C) dollar value of an hour of work. D) dollar value of what a worker could earn in another job.
As real disposable income increases, consumption expenditures
A) increase by the same amount. B) increase by a smaller amount. C) increase by a larger amount. D) remain constant.