"Input-Output" Macroeconomics Stresses That a Change in Nominal Aggregate Demand

question 2

Multiple Choice

"Input-output" macroeconomics stresses that a change in nominal aggregate demand ________ produces an equal-proportional change in every firm's marginal cost,so that firms should consider indexing their price to nominal aggregate demand a very ________ pricing strategy.

• A)need not,safe
• B)need not,risky
• C)must,safe
• D)must,risky

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