24. Which of the following best describes the economy's response to a negative demand shock?Firms' inventories will increase, causing them to cut production. an hour ago 2. D) magazine publishers tend to change their newsstand prices only every three or four years. Which of the following best describes the economy's response to a positive demand shock?Firms' inventories will decrease, causing them to increase production. We could expect that, in the futureSuppose that prices are sticky in the short-run. Which of the following statements about price stickiness orflexibility is true? Which of the following best represents negative demand shock when prices are inflexible?Refer to the graph above. 4 hours ago 21.

A. increasing price levels will increase the unemployment rate B. wages and real GDP are sticky over time C. wages are maintained at original equilibrium D. flexibility of wages and prices over time. 21) Which of the following statements about price stickiness or flexibility is true? 79. We use cookies for various purposes including analytics.

Page 2 11. We could expect that in the future:If expectations are always met then firms would never contribute to any of the short-run fluctuations in employment and output that are observed in real-world economies.Sticky prices could be the result of firms being afraid of price wars.Economists are sharply divided over how to best fight the Great Recession. flexible-price policy B) Will not hold inventories C) Will tend to experience smaller inventory changes than firms that follow a flexible-price policy D) Find that their inventories do not respond to demand shocks 20) TRUE/FALSE. A) in the short run, some wages and prices are sticky.

Assume that apples cost $0.50 in 2002 and $1 in 2007, whereas oranges cost $1 in 2002 and $0.50 in 2007.
Prices of many raw materials are much more flexible than the prices of final goods and services.

In the classical model with fixed income, a reduction in the government budget deficit will lead to a: 29. Suppose a firm is currently producing 500 computers per week and charging a price of $1000. Stickiness is a condition wherein a nominal price … Welcome to Chegg! Assume that apples cost $0.50 in 2002 and $1 in 2007, whereas oranges cost $1 in 2002 and $1.50 in 2007. Which of the following is an explanation for price stickiness? In a Cobb-Douglas production function the marginal product of capital will increase if: 19.

The neutrality of money is an economic theory stating that changes in the aggregate money supply only affect nominal variables, such as prices, wages, and exchange rates.

What happens to nominal GDP?Suppose a small economy produces only HD TV sets. B. How will the firm respond to a positive demand shock if prices are inflexible?The firm will increase production to 650 computers per week and charge a price of $1000Refer to the graph above.

D) magazine publishers tend to change their newsstand prices only every three or four years.

If total consumption (measured in billions of current dollars) equals $3,657, consumption of durable goods is $480, and consumption of nondurable goods is $1,194, then consumption of services is: 11.

Which of the following statements about price stickiness or flexibility is true? A) in the short run, some wages and prices are sticky. Which of the following best describes the economy's response to a negative demand shock?Firms' inventories will increase, causing them to cut production.

Which of the following statements best describes price flexibility in the economy? Prices of many raw materials are much more flexible than the prices of final goods and services. In year 2, 100,000 sets are produced and sold at a price of $1,000 each.

78.

There are adjustment costs associated with changing prices such as the cost of printing new price lists. Which of the following statements about price stickiness or flexibility is true? Which of the following statements about price stickiness or flexibility is true? If an earthquake destroys some of the capital stock, the neoclassical theory of distribution predicts: d. the real wage will fall and the real rental price of capital will rise.
an hour ago

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