A monopoly firm expands its output and lowers its price. The firm finds that its total revenue falls. Hence, the firm is producing in the

Research supporting the new Keynesian model finds that prices are ________

A) slow to adjust to aggregate demand shocks B) changed very frequently C) changed only infrequently D) not as flexible as wages

The Baker Plan for addressing the debt crisis was based on the assumption that

A) most countries would eventually default on their debt. B) forgiveness of some of the debt was inevitable. C) hyperinflation would eventually reduce the real value of the debt. D) renewed lending by U.S. and European banks would restore growth and make the debt manageable.