In the model of price setting, the demand for the firms product is:
A) positively related to real income in the economy.
B) positively related to the firms price relative to the price level.
C) negatively related to the real wage the firm pays.
D) all of the above.
Correct Answer:
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Q3: A model with sticky prices and nominal
Q4: In the model with sticky prices, in
Q5: In the model with sticky prices, in
Q6: Sticky prices are:
A)real prices that do not
Q7: In the short run in a model
Q9: A firm's markup ratio is:
A)its price relative
Q10: Menu costs are the posted prices of
Q11: In the model of price setting, the
Q12: In the model with sticky prices, in
Q13: In the model with sticky prices, in
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