Suppose that data for a particular economy over time suggest that its aggregate demand curve is both steep and shifts frequently. We might reasonably infer that ________
A) the central bank has an activist emphasis on the stability of economic activity
B) wages and prices are remarkably flexible
C) policy lags are quite long
D) all of the above
E) none of the above
A
Economics
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Refer to Figure 18.3. Livonia has a comparative advantage in the production of
A) pogo sticks. B) scooters. C) both scooters and pogo sticks. D) neither scooters nor pogo sticks.
Economics
If the nominal interest rate is less than the equilibrium nominal interest rate determined in the money market, then in the short run households and firms
A) buy financial assets. B) sell financial assets. C) increase real GDP. D) lower the price level. E) raise the price level.
Economics