Gordon argues that individual workers and firms prefer long-term contracts, but that such contracts
A) raise the costs of doing business, a macroeconomic externality.
B) insure that output alone is adjusted as AD changes and therefore, such contracts impose high costs of output and employment instability on society.
C) insure that the price level alone is adjusted as AD changes and therefore, such contracts impose high costs of output and employment instability on society.
D) insure a macroeconomic externality, rigid unemployment.
B
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Gross Domestic Product measures the
A) quantity of the goods and services produced in a given year, listed item by item, within a country. B) income of the business sector within a country. C) market value of the final goods and services produced in a given year within a country. D) measures the market value of the domestic labor in a given year within a country. E) market value of the final goods and services consumed by households in a given year within a country.
Firms A and B are identical, produce identical products, and are the only firms in a market. Firm A's output is higher than Firm B's. This means that Firm B is the
A) Cartel leader. B) Stackelberg leader. C) Stackelberg follower. D) Cournot leader.