This topic contains a solution. Click here to go to the answer

Author Question: The cost to firms of changing prices A) is called a menu cost. B) is small even when there is ... (Read 190 times)

lb_gilbert

  • Hero Member
  • *****
  • Posts: 588
The cost to firms of changing prices
 
  A) is called a menu cost.
  B) is small even when there is rapid inflation.
  C) does not exist if inflation is perfectly anticipated.
  D) all of the above

Question 2

Refer to Figure 27-1. Suppose the economy is in short-run equilibrium above potential GDP and wages and prices are rising.
 
  If contractionary policy is used to move the economy back to long run equilibrium, this would be depicted as a movement from ________ using the static AD-AS model in the figure above.
  A) B to A B) A to E C) C to B D) E to A E) D to C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

debra928

  • Sr. Member
  • ****
  • Posts: 342
Answer to Question 1

A

Answer to Question 2

C




lb_gilbert

  • Member
  • Posts: 588
Reply 2 on: Jun 29, 2018
Wow, this really help


xiaomengxian

  • Member
  • Posts: 311
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

For a complete list of videos, visit our video library