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.

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Definitions:

Phylogeny

Evolutionary history of a group of organisms.

Evolutionary History

A chronicle of the development and changes in populations or organisms over generations.

Three-Domain System

Classification system that places all organisms into one of three large domains—Bacteria, Archaea, and Eukarya.

Archaea

A domain of single-celled microorganisms without a nucleus, distinct from bacteria and eukaryotes, often found in extreme environments.