The Shorter Is the Interval Between Firms' Price Adjustments

question 215

Multiple Choice

The shorter is the interval between firms' price adjustments,

• A) the greater is the scope for activist policies to stabilize the economy.
• B) the smaller is the scope for activist policies to stabilize the economy.
• C) a given unexpected increase in aggregate demand will cause a larger increase in output.
• D) a given unexpected increase in aggregate demand will cause a smaller increase in the price level in the short run.

Utilize the complement method for determining net prices.

Understand and apply rounding rules in financial calculations.

Compute discount dates and due dates in cash discount scenarios.

Calculate the amount of discount and remittance for early payments.

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