Author Question: What do we need to assume about firms in the sticky price model? A) They accommodate any demand ... (Read 21 times)

mspears3

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What do we need to assume about firms in the sticky price model?
 
  A) They accommodate any demand at the given price.
  B) They hire until the real wage equals the average labor productivity.
  C) They maximize only current profits.
  D) They adapt the price to current conditions.

Question 2

Current estimates of the marginal propensity to consume out of wealth are in the neighborhood of ________.
 
  A) three and one-half cents per dollar of wealth
  B) 45 cents per dollar of wealth
  C) 98 cents per dollar of wealth
  D) 4.87 per dollar of wealth



yuyiding

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Answer to Question 1

A

Answer to Question 2

A



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