If Firms Maintain Preset Prices in the Short Run, Then

question 30

Multiple Choice

If firms maintain preset prices in the short run, then the primary cause of output gaps is changes in:

• A)potential output.
• B)prices.
• C)capital and technology.
• D)economy-wide spending.

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Definitions:

Standard Deviation

Represents the extent to which values in a data set differ from the average value.

Weekly Earnings

The amount of money an individual earns from work in a typical week.

Bus Drivers

Individuals who operate buses, transporting passengers between locations following a predetermined route.