Suppose There Is a 5 Percent Increase in Nominal Demand

question 82

Multiple Choice

Suppose there is a 5 percent increase in nominal demand in every industry in an economy.Factors that keep the price level from also rising by 5 percent are called

• A)real rigidities.
• B)nominal rigidities.
• C)macroeconomic externalities.
• D)indexations.

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Definitions:

Operational Definition

A clear, precise description of a variable or concept that allows it to be measured or manipulated within an experiment.

Investigators

Individuals, often researchers or detectives, who carry out formal inquiries or investigations to discover facts or collect information.

Compromise

A solution to a conflict or problem where all parties involved make concessions to reach an agreement.

Phenomenon

An observable fact or event, especially one that can be scientifically described and investigated.