The stickiness of wages and prices will cause
A) changes in aggregate demand to have short-run effects on real GDP.
B) changes in aggregate demand to have no short-run effects on real GDP.
C) changes in aggregate demand to have long-run effects on real GDP.
D) changes in aggregate demand to have both short-run and long-run effects on real GDP.
A
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As used in the text, the "composite good" refers to:
a. large purchases that cannot be incrementally divided b. an abstraction requiring more than a three-dimensional graph c. income not spent on good X is two-dimensional graphical presentation d. the notion that consumers cannot be modeled graphically e. none of the above
If the bidders at a second-price auction have true values of $8, $7, $6, and $5, the item will sell for
a. $8 b. $7 c. just over $7 d. just under $7