Those Economists Who Attempt to Explain Why Wages and Prices

question 58

Multiple Choice

Those economists who attempt to explain why wages and prices do not freely adjust would most likely be

• A)real business cycle theorists.
• B)new classical economists.
• C)new Keynesian economists.
• D)new growth theorists.
• E) none of the above

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Definitions:

Perpetual Inventory System

A financial recording technique that immediately documents inventory sales or acquisitions through computerized point-of-sale systems and software for managing enterprise assets.

Administrative Expenses

The costs related to the general administration of a business, such as salaries of senior executives, accounting, human resources, and information technology.

President's Salaries

Compensation or wage paid to the president of a company, often reflecting their role's responsibility and level of professional experience.

Depreciation

The planned allocation of a physical asset's cost over the time it remains useful.