Employing the New Keynesian concepts of "macroeconomic externality" and "coordination failure":
if nominal aggregate demand and marginal cost fall by the same proportion, society ________ afford to compensate firms for the profit they lose when they ________.
A) can, bear the menu costs of changing prices
B) can, hold prices constant
C) cannot, bear the menu costs of changing prices
D) cannot, hold prices constant
A
Economics
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When the price level falls, the ________ curve for nominal money ________, and interest rates ________, everything else held constant
A) demand; decreases; fall B) demand; increases; rise C) supply; increases; rise D) supply; decreases; fall
Economics
Refer to above Table 2-1. What is the level of Net Private Domestic Investment?
A) 420 B) 780 C) 380 D) 340
Economics