Author Question: The shorter is the interval between firms' price adjustments, A) a given unexpected increase in ... (Read 80 times)

Lisaclaire · **on:** Jun 30, 2018

The shorter is the interval between firms' price adjustments,

A) a given unexpected increase in aggregate demand will cause a larger increase in output.
B) the greater is the scope for activist policies to stabilize the economy.
C) the smaller is the scope for activist policies to stabilize the economy.
D) a given unexpected increase in aggregate demand will cause a smaller increase in the price level in the short run.

Question 2

According to this Application, when the states got into fiscal difficulties in the 1840s through overly ambitious infrastructure projects, the federal government

A) again bailed out all the states.
B) did not bail out any of the states.
C) bailed out only the northern states, but not the southern states.
D) only bailed out the states which comprised the original 13 colonies.