If prices are sticky - Study guides, Class notes & Summaries

Chapter 10. Introduction to Economic Fluctuations 1.Business cycles are: A) regular and predictable. B) irregular but predictable. C) regular but unpredictable. D) irregular and unpredictable. 2.Short-run fluctuations in output and employment are called: A) sectoral shifts. B) the classical dichotomy. C) business cycles. D) productivity slowdowns. 3.Recessions ...

Econ 102 quiz 3 Question 1 of 10 10.0/ 10.0 Points Which of the following is a problem with the price system that can lead to a breakdown in the coordination of economic activity? A. The price system works silently in the background. B. Prices can be slow to adjust. C. Prices may be flexible. D. all of the above Answer Key: B Question 2 of 10 10.0/ 10.0 Points If prices are sticky A. economic activity will be coordinated efficiently. B. economic activity will not be coo...

Chapter 16. Understanding Consumer Behavior 1.The consumption decisions of individuals are not important for the: A) determination of the steady-state capital stock. B) determination of fiscal-policy multipliers. C) determination of aggregate demand. D) determination of sticky prices. 2.The marginal propensity to consume is the: A) ratio of consumption to income. B) amount consumed out of an add...

ECON 102 QUIZ 3 Question 1 of 10 Which of the following is a problem with the price system that can lead to a breakdown in the coordination of economic activity? Question 2 of 10 If prices are sticky Question 3 of 10 What are some reasons why coordination of economic affairs through the price system may not work perfectly? Question 4 of 10 One reason the aggregate demand curve is downward sloping is because of the Question 5 of 10 Which of the following would cause an increase in aggregate deman...

ECON 104 HOMEWORK 2 QUESTIONS AND ANSWERS Question 1 3 / 3 pts Use the information below to answer questions 1-6 Consider an economy that produces only two goods: fresh apricots and dried apricots. In this economy, the technology of producing dried apricots is to place fresh apricots on special racks and allow them to dry in the sun. Fannie’s Farms is the only company that grows fresh apricots, while Darryl’s Dried Victuals is the only producer of dried apricots. Fannie’s ...

Strategic Management - integrative management - combines: Analysis, Formulation, and Implementation - designed to look for a companies competitive advantage - helps you think like a GM What is Strategy? - to Gain and Sustain Competitive Advantage - its a set of Goal-directed actions to gain and sustain Superior Performance What makes a Good Strategy? 1.Analyze firms External and Internal Environments 2. Strategy Formulation 3. Accomplished through Strategy Implementa...

Chapter 14. Aggregate Supply and the Short-run Tradeoff Between Inflation and Unemployment 1.The basic aggregate supply equation implies that output exceeds natural output when the price level is: A) low. B) high. C) less than the expected price level. D) greater than the expected price level. 2.Some firms do not instantly adjust the prices they charge in response to changes in demand for all of the following reasons except: ...

Question 1 of 10 10.0/ 10.0 Points Which of the following is a problem with the price system that can lead to a breakdown in the coordination of economic activity? A. The price system works silently in the background. B. Prices can be slow to adjust. C. Prices may be flexible. D. all of the above Answer Key: B Question 2 of 10 10.0/ 10.0 Points If prices are sticky A. economic activity will be coordinated efficiently. B. economic activity will not be coordinated efficiently. C. price...

Suppose the initial conditions of the economy are characterized by the following equations in black font. We then shock the economy as shown in the red font. What is the value of Investment: I = Fill in the intercept and slope values to correctly complete the AE equation: AE = The value of equilibrium output (Y) = The value of equilibrium consumption (C) = We now incur shocks to the economy as provided in the red font. Use these new conditions to get expressions for the Consumption function, Inv...

ECON 104 HOMEWORK 2 QUESTIONS AND ANSWERS Darryl's profit from selling dried apricots is: Fannie’s profit from selling fresh apricots is: Use the income approach to calculate nominal GDP. Fill in the blanks in the table below. Enter numbers with no commas, no dollar signs and no decimals. For example, if your answer is $12,000 you would enter 12000 into the appropriate box. Now let’s use the expenditure approach to calculate nominal GDP. So here we will add up all consumer spending on FINAL...