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:

Mental Software

Conceptual tools or cognitive frameworks that influence how individuals process information and make decisions.

Culture

A learned system of knowledge, behavior, attitudes, beliefs, values, and norms that is shared by a group of people.

Assertiveness

The quality of being self-assured and confident without being aggressive, in communication or behavior.

Aluminum Processing

The series of operations involved in converting raw aluminum into usable products or forms.