The AS-curve is horizontal or very flat if
A: additional resources (especially labor) can be hired to produce additional output with little or no increase in existing prices
B: wages fall rapidly with an increase in unemployment, reducing spending and income to restore equilibrium
C: firms lower wages less than prices to avoid a loss in profit during a recession
D: the nominal wage adjustment occurs fairly rapidly
E: nominal wages and prices always change proportionally, leaving the real wage rate unchanged
A: additional resources (especially labor) can be hired to produce additional output with little or no increase in existing prices
B: wages fall rapidly with an increase in unemployment, reducing spending and income to restore equilibrium
C: firms lower wages less than prices to avoid a loss in profit during a recession
D: the nominal wage adjustment occurs fairly rapidly
E: nominal wages and prices always change proportionally, leaving the real wage rate unchanged
举一反三
- An increase in government purchases will NOT increase the level of output if A: the AS-curve is totally price elastic B: the price level is fixed C: wages and prices are completely rigid D: wages and prices are completely flexible E: real money balances are not affected
- What is the result of a tighter labor market? A: It can produce wage growth. B: It can increase unemployment rate. C: It can produce wage reduction D: It can lower unemployment rate
- As the economy enters a boom we can generally expect that A: inflation will decrease with little change in the unemployment rate B: unemployment will increase and inflation will decrease C: nominal GDP will increase but only because of an increase in the price level D: inflation will increase and the unemployment rate will decrease E: output will increase with little change in unemployment or inflation
- Which of the following assumptions is crucial to the classical model but not the Keynesian model? A: The real wage always equals the marginal product of labor. B: Real wages are perfectly flexible. C: Nominal wages are perfectly flexible. D: Monetary policy primarily affects aggregate demand.
- An increase in the population and hence the supply of labor causes a A: shortage of labor at the original real wage rate and the real wage rate will fall. B: surplus of labor at the original real wage rate and the real wage rate will rise. C: surplus of labor at the original real wage rate and the real wage rate will fall. D: shortage of labor at the original real wage rate and the real wage rate will rise.