According to the new Keynesian theory, the widespread importance of small menu costs results in variations in aggregate demand causing both
A) smaller short-run adjustments in real GDP and immediate adjustment in the price level.
B) smaller short-run adjustments in real GDP and delayed adjustment in the price level.
C) greater short-run adjustments in the real GDP and immediate adjustment in the price level.
D) greater short-run adjustments in real GDP and delayed adjustment in the price level.
D
Economics
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In 1981, the Reagan administration employed a policy that included tax ____ while at the same time the Federal Reserve’s strategy was to combat ____.
A. cuts; unemployment B. cuts; inflation C. hikes; unemployment D. hikes; inflation
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A quantity restriction decreases the price of the product and the quantity produced.
Answer the following statement true (T) or false (F)
Economics