In the Aggregate Demand and Aggregate Supply Model,sticky Wages,sticky Prices,and

question 68

Multiple Choice

In the aggregate demand and aggregate supply model,sticky wages,sticky prices,and misperceptions about relative prices

• A)have temporary effects.
• B)explain why the short run aggregate supply curve might shift.
• C)explain why the aggregate demand curve is downward sloping.
• D)explain monetary neutrality.

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Definitions:

Emotional Distress

A state of mental suffering that is typically a response to an external stimulus and can impact daily functioning.

Caregiver

An individual, typically a family member or paid helper, who regularly looks after a child, elderly person, or someone with illness or disability.

Stranger Anxiety

A fear of strangers common in infants at about 6 months and increasing in intensity until about 12 months, and then declining in the second year.

Taper Off

Gradually decrease the intensity or quantity of something, such as medication usage or exercise, over a period of time.