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Author Question: What do we need to assume about firms in the sticky price model? A) They accommodate any demand ... (Read 22 times)

mspears3

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on: Jun 30, 2018
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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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

A


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