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.

Identify the risk aversion rationale of commercial lending institutions.

Identify alternative lending sources for companies with no positive cash flow.

Know the importance of providing credible business documents in lending decisions.

Analyze the challenges startups face in borrowing money and steps for overcoming them.

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Definitions:

Rule Of Reciprocity

A social norm where individuals feel obliged to return favors or kindness received from others.

Social Exchange Theory

The idea that interpersonal relationships are governed by perceptions of the rewards and costs exchanged in interactions.

Economic Model

A theoretical construct representing economic processes by a set of variables and a set of logical or quantitative relationships between them.

Evolutionary Implications

The potential long-term effects or significances of evolutionary processes on organisms, behaviors, or traits.