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Author Question: The cost to firms of changing prices A) is called a menu cost. B) is small even when there is ... (Read 157 times)

lb_gilbert

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on: Jun 29, 2018
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


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debra928

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

C


lb_gilbert

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

diana chang

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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