If firms maintain preset prices in the short run, then the primary cause of output gaps is changes in:
A) potential output.
B) prices.
C) capital and technology.
D) economy-wide spending.
Correct Answer:
Verified
Q100: In Macroland, potential output equals $100 trillion
Q101: The economy of Alpha operates according to
Q102: The economy of Omega operates according to
Q103: If all prices adjusted immediately to balance
Q104: According to Okun's law, when cyclical unemployment
Q106: The economy of Omega operates according to
Q107: According to Okun's law, when cyclical unemployment
Q108: Contrary to behavior that would be required
Q109: In Macroland, a country whose economy operates
Q110: Varying the quantity of output produced and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents