This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In the long run, an economy will produce its potential output if: a. workers mistakenly believe ... (Read 71 times)

big1devin

  • Hero Member
  • *****
  • Posts: 583
on: Jun 30, 2018
In the long run, an economy will produce its potential output if:
 a. workers mistakenly believe that nominal wages equal real wages.
 b. the expectations of workers and firms are the same in the long and short run.
  c. wages and prices are sufficiently flexible.
 d. the price level is high.
 e. the price level is low.

Question 2

Monetary policy will be effective in changing the gross domestic product of a nation only if:
 a. planned investment expenditures are autonomous.
 b. planned investment expenditures are sensitive to interest rates.
  c. interest rates are unresponsive to changes in money supply.
  d. interest rates are sensitive to changes in the price level.
 e. planned investment expenditures are sensitive to interest rates.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Carissamariew

  • Sr. Member
  • ****
  • Posts: 359
Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

b


big1devin

  • Hero Member
  • *****
  • Posts: 583
Reply #2 on: Jun 30, 2018
Thank you :)


Carissamariew

  • Sr. Member
  • ****
  • Posts: 359
Reply #3 on: Jun 30, 2018
Happy to help you


« previous next »
 

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Basidiomycetes produce diverse fruiting bodies. Basidiomycetes produce diverse fruiting bodies.
Water Potential, Solute Potential, and Pressure Potentia Water Potential, Solute Potential, and Pressure Potentia
Workers at a Nike factory in Indonesia insert soles into sneakers for fourteen cents an hour. Workers at a Nike factory in Indonesia insert soles into sneakers for fourteen cents an hour.
A spark tester connected to a spark plug wire or coil output. A typical spark tester will fire only ... A spark tester connected to a spark plug wire or coil output. A typical spark tester will fire only ...
Small local hydroelectric power generators have more future potential Small local hydroelectric power generators have more future potential
PV cells have potential for domestic and commercial use PV cells have potential for domestic and commercial use
Video: hGH (protein synthesis, growth and development)

For a complete list of videos, visit our video library