Macroeconomic Models

question 53

Multiple Choice

Macroeconomic models:

• A) assume all wages and prices are sticky.
• B) assume all wages and prices are flexible.
• C) make different assumptions to explain different aspects of the macroeconomy.
• D) focus primarily on the optimizing behavior of households and firms.

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Definitions:

Duty Of Care

A legal obligation to avoid acts or omissions that could likely cause harm to others.

Ordinarily Prudent Person

A legal standard that represents how a typical, reasonable person would act in certain circumstances, usually used to determine negligence.

Pac-Man

A classic arcade video game first released in 1980 featuring a character navigating a maze while eating dots and avoiding ghosts.

Tender Offer

A public offer by a bidder to purchase a subject company’s shares directly from its shareholders at a specified price for a fixed period of time.