Any Implication of the Imperfect-Information Model Is That Any Stimulus

question 18

Multiple Choice

Any implication of the imperfect-information model is that any stimulus in aggregate demand is channeled more strongly into price acceleration

• A) the more firms expect that stimulus to be channeled in prices.
• B) the more firms expect that stimulus to be felt in output.
• C) the smaller the uncertainty surrounding the price acceleration.
• D) the smaller the uncertainty surrounding what output stimulus might be felt.
• E) none of the above.

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Definitions:

Compress

To press together or into less space.

Prime Mover

Muscle that plays a major role in accomplishing a movement.

Cause Movement

The initiation of change in position or motion in response to external or internal stimuli.

Named

Designated or given a specific title.