Wage and Price Rigidities Created by Long-Term Contracts Suggest That

question 4

Multiple Choice

Wage and price rigidities created by long-term contracts suggest that an anticipated monetary expansion will have

• A)no effect on the aggregate price level.
• B)no effect on aggregate output.
• C)an effect on aggregate output only.
• D)an effect on both aggregate output and the price level.

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Definitions:

Vitamins

Organic compounds required in small amounts for normal metabolism and not synthesized in sufficient quantities by the body.

Hepatic Portal Vein

A blood vessel that carries blood from the gastrointestinal tract and spleen to the liver.

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A psychological disorder marked by an extreme fear of gaining weight, leading to severe restriction of food intake.

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The monthly process in which the lining of the uterus is shed through the vagina, a natural part of the female reproductive cycle.