Stabilization Policies Will Probably Be Needed to Deal with Unemployment

question 87

Multiple Choice

Stabilization policies will probably be needed to deal with unemployment if:

• A) aggregate demand falls and input prices are not "sticky."
• B) aggregate demand falls and input prices are "sticky."
• C) aggregate demand increases and input prices are not "sticky."
• D) aggregate demand increases and input prices are "sticky."

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Definitions:

Northwest-corner Rule

A method used in transportation problem in operations research, where solution starts from the northwest corner of the cost matrix and progresses.

Transportation Routes

Paths or networks designed and used for the movement of vehicles and goods from one location to another.

Improvement Index

A quantitative measure or indicator that tracks the degree of improvement in performance, process, or outcome over time.

Minimization Problem

A type of optimization problem aimed at finding the lowest possible value of a function within a given set of constraints.