Prisoners Sometimes Determine a Single Good to Be Used as Money

question 152

Multiple Choice

Prisoners sometimes determine a single good to be used as money. This good becomes

• A)a medium of exchange and a unit of account.
• B)a medium of exchange, but not a unit of account.
• C)a unit of account, but not a medium of exchange.
• D)neitehr a unit of account nor a medium of exchange.

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Definitions:

Short-Run Aggregate-Supply Curve

A curve that shows the relationship between the total output of goods and services and the price level for output in the short run.

Wages Are Sticky

The theory that salaries do not adjust quickly to changes in market conditions, leading to unemployment or surpluses.

Short-Run Aggregate Supply Curve

A graphical representation showing the relationship between the total production of goods and services and the price level for output in the short run.

Actual Price Level

The current general price of goods and services in the economy.