When there is a threat of inflation in the economy, the Fed can ________ the federal funds rate so as to ________ aggregate demand and ________ the price level
A) lower; increase; decrease
B) raise; decrease; increase
C) lower; increase; increase
D) raise; decrease; decrease
E) raise; increase; decrease
D
Economics
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In the Keynesian model, a firm's high menu costs cause
A) real-wage rigidity. B) full employment. C) price stickiness. D) efficiency wages.
Economics
If the demand curve for wedding cakes shifts to the right, then the value of the marginal product of labor for bakers will
a. rise. b. fall. c. remain unchanged. d. rise or fall; either is possible.
Economics