One of the reasons for exploring what determines the overall level of prices and the rate of inflation in our flexible-price full-employment model of the macroeconomy is that
A) over the short-run, wages and prices are effectively flexible.
B) over relatively long periods of time, wages and prices are effectively flexible.
C) wages and prices are always flexible, as assumed in the model.
D) unemployment very rarely occurs anymore.
Correct Answer:
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Q6: The rate of inflation or deflation is
A)
Q7: In Russia in 1998 the price level
A)
Q8: In Germany in 1923 the price level
A)
Q9: In the United States during the 1970s,
Q10: The classical dichotomy means that
A) real variables
Q12: To an economist, money
A) is wealth that
Q13: Each of the following is part of
Q14: In a barter economy
A) one could easily
Q15: The fact that money serves as a
Q16: The benefit of holding money in one's
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