When economists address the concept of price and wage stickiness in relation to the business cycle, they are referring to
A) nominal prices and nominal wages.
B) real prices and real wages.
C) both nominal and real prices and wages.
D) both nominal and real prices, but only real wages.
A
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Which of the following supports the skeptics doubts about the idea that a "New Economy" had emerged in the late 1990s?
A) In early 2000, investment in computer equipment turned to negative growth. B) A drop in productivity growth in 2001 was followed by a bounce-back of productivity growth in early 2002. C) The opinion of Alan Greenspan, Chairman of the Federal Reserve System, concerning the pace at which technological innovations are being applied D) None of the above.
Under a pure gold standard,
A) exchange rates float most of the time. B) money is worth more than under other systems. C) nations must buy and sell gold to settle international obligations. D) there is no inflationary pressure.