According to Keynesian theory, the typical firm
A) lowers its prices when inventories are decreasing.
B) changes its prices frequently in response to fluctuations in aggregate demand.
C) does not change its prices immediately when aggregate demand fluctuates.
D) lowers its prices if sales exceed production.
Correct Answer:
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Q2: Which of the following shifts the aggregate
Q3: The short- run multiplier is equal to
Q4: The multiplier effect on real GDP occurs
Q5: Which of the following is NOT an
Q6: An increase in the size of the
Q8: The relationship between net exports and GDP
Q9: Suppose that last year the slope of
Q10: If real GDP is $13 billion and
Q11: An increase in disposable income
A)results in a
Q12: If the price level rises, the purchasing
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