If firms set prices and then keep them fixed for a period of time, their fixed prices imply that
A) the aggregate price level is fixed and that aggregate demand determines the quantity of goods and services sold.
B) prices are set by aggregate demand and supply.
C) the aggregate price level is fixed and that aggregate supply determines the quantity of goods and services sold.
D) the aggregate price level adjusts continuously.
Correct Answer:
Verified
Q51: Q52: The positive slope of the consumption function Q53: Aggregate planned expenditure Q54: If consumption expenditures for a household increase Q55: Suppose the consumption function is given by Q57: Planned saving equals Q58: When real GDP exceeds aggregate planned expenditure, Q59: Which of the following is INCORRECT? Q60: The part of aggregate planned expenditure that Q61: The value of the marginal propensity to
A)is always less than actual
A)planned consumption expenditure plus disposable
A)GDP
A)The multiplier
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