The new Keynesian sticky-price theory indicates that an increase in aggregate demand generates
A. rapid increases in both real Gross Domestic Product (GDP) and the price level.
B. sluggish increases in both real Gross Domestic Product (GDP) and the price level.
C. a speedy rise in the price level but a sluggish increase in real Gross Domestic Product (GDP).
D. a speedy rise in real Gross Domestic Product (GDP) but a sluggish increase in the price level.
Answer: D
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There are generally, in most areas, a large number of qualified physicians whose services are highly personalized. In addition to price, factors such as age, sex, location, and personality influence the choice of physician. Thus, the market is best described as
a. perfectly competitive. b. a differentiated oligopoly. c. a monopoly. d. monopolistically competitive.
Which of the following is not correct? In a 2006 survey of Ph.D. economists,
a. 47 percent favored eliminating the minimum wage. b. 14 percent would maintain the minimum wage at its current level. c. 38 percent would increase the minimum wage. d. 10 percent would decrease the minimum wage.