Author Question: Which of the following schools of thought believes that wages and prices are rigid in the short run? ... (Read 95 times)

Collmarie · **on:** Jun 30, 2018

Which of the following schools of thought believes that wages and prices are rigid in the short run?
a. Keynesians and new Keynesians
b. Only monetarists
c. Only new classical economists
d. Monetarists and new classical economists
e. Monetarists and Keynesians

Question 2

If the supply curve for aspirin is perfectly elastic, a reduction in demand will cause the equilibrium price to:
a. rise and the equilibrium quantity to fall.
b. rise and the equilibrium quantity to stay the same.
c. fall and the equilibrium quantity to fall.
d. stay the same and the equilibrium quantity to fall.