According to this Application, the prices which were tracked in the retail catalogs exemplified the macroeconomic concept of the short run, a period of time in which
A) prices change frequently because of changes in aggregate supply.
B) prices don't change very much, implying that the aggregate supply curve is relatively flat.
C) prices never change because the aggregate demand curve is vertical.
D) price changes are significant because the aggregate supply curve is vertical.
B
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As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills, the economy experiences
A) structural unemployment. B) frictional unemployment. C) cyclical unemployment. D) changes in the business cycle. E) avoidable unemployment.
Comparing aggregate expenditure and aggregate incomes shows that
A) aggregate expenditure is usually greater than aggregate income. B) aggregate income is usually greater than aggregate expenditure. C) they are equal. D) aggregate income cannot equal aggregate expenditure if we have any savings.