In the Short Run, Nominal Wages and Other Input Prices

question 77

Multiple Choice

In the short run, nominal wages and other input prices are assumed to be

• A) unresponsive to product price-level changes, but in the long run they are assumed to be responsive.
• B) unresponsive to product price-level changes, and in the long run they are assumed to be unresponsive also.
• C) responsive to product price-level changes, but in the long run they are assumed to be unresponsive.
• D) responsive to product price-level changes, and in the long run they are assumed to be responsive also.

Recognize the limitations and criticisms of Freud's psychoanalytic theory.

Explain the concept of sublimation and its role in channeling unacceptable impulses into socially acceptable actions.

Understand the humanistic perspective on personality, emphasizing self-actualization and conditions of worth.

Analyze the role of the self-concept and self-verification in one's psychological experience according to Carl Rogers.

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Definitions:

APT

Abbreviation for Arbitrage Pricing Theory, a multifactor financial model that describes the relationship between the return of a portfolio and the return of a single asset through a linear combination of macroeconomic factors.

CAPM

A model identifying the connection between the expected returns of assets, primarily shares, and their associated systematic risk, known as the Capital Asset Pricing Model.

Systematic Risk Factors

Market risks that affect the overall market and cannot be eliminated through diversification, such as interest rates, inflation, and economic cycles.

Equally-Weighted Portfolio

An investment portfolio where each asset is allocated the same proportion of the total investment.