After a Drop in Nominal Aggregate Demand,if Menu Costs Prevent

question 95

Multiple Choice

After a drop in nominal aggregate demand,if menu costs prevent firms from reducing prices,this is considered ________ act by firms ________ a "macroeconomic externality."

• A)a rational,because it produces
• B)a rational,that happens to produce
• C)an irrational,because it produces
• D)an irrational,that happens to produce

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Definitions:

Land

The natural resource encompassing the earth's surface, not including water or buildings.

Agriculture Sales

The trading of products and services related to farming and other agricultural activities.

Industrial Capitalist

An individual or entity that invests in industries for profit through the ownership of physical goods and capital goods used in production.

19th Century

The period from January 1, 1801, to December 31, 1900, characterized by industrialization, colonial expansion, significant technological advancements, and various social changes.