The price misperception model predicts:
A) the price level will be countercyclical and in the data the price level is countercyclical.
B) the nominal quantity of money is countercyclical while in the data money is weakly procyclical.
C) the real wage is countercyclical while in the data the real wage is procyclical.
D) all of the above.
Correct Answer:
Verified
Q36: An increase in the money supply:
A)can not
Q37: In the current period a perceived increase
Q38: If the nominal wage rises from €10
Q39: If the nominal wage rises from €10
Q40: While price misperceptions can cause an increase
Q42: What are the short run effects of
Q43: Monetary policy can affect real variables in
Q44: On what types of prices do households
Q45: Price misperception during a positive technology shock
Q46: Price misperception during a positive technology shock
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