If wages and prices are flexible, then a recession is best eliminated when prices
A. And wages both rise.
B. Drop and wages rise.
C. And wages both fall.
D. Rise and wages drop.
Answer: C
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In an all-currency economy in which real output and the real interest rate are fixed and the rates of money growth and inflation are constant, the inflation rate equals
A) the real interest rate. B) the nominal interest rate. C) the growth rate of the nominal money supply. D) the level of real seignorage revenue.
Which of the following is not a bargaining advantage enjoyed by bureau's?
a. They only have one legislature to deal with so bureaus are quite experienced in extracting a favorable budget agreement. b. The legislature typically gets all information on the bureau from the bureau itself. c. The bureaus have the ability to go out and hire the best negotiators while members of the legislature are the fixed negotiators on the other side. d. Considerable bargaining occurs in committees comprised of high demanders of the output of the bureaucracy.