If the Average Interval Between Firms' Price Adjustments Is Relatively

question 65

Multiple Choice

If the average interval between firms' price adjustments is relatively long

• A) an increase in aggregate demand will cause a relatively short-lived increase in real GDP.
• B) an increase in aggregate demand will cause a relatively long-lived increase in real GDP.
• C) a reduction in aggregate demand will cause a relatively short-lived reduction in real GDP.
• D) none of the above.

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Definitions:

Technological Determinism

The theory that society's technology drives the development of its social structure and cultural values.

Normal Accident

A concept suggesting that in complex systems, accidents are inevitable due to the intricate and tightly coupled nature of their components.

Technological Limitations

The constraints or boundaries imposed by current technology on what can be achieved or produced.

Ulterior Motives

Hidden or secret reasons behind an individual's actions or behavior, often differing from the reasons that are openly stated or observed.