"Input-Output" Macroeconomics Stresses That a Change in Nominal Aggregate Demand

question 2

Multiple Choice

"Input-output" macroeconomics stresses that a change in nominal aggregate demand ________ produces an equal-proportional change in every firm's marginal cost,so that firms should consider indexing their price to nominal aggregate demand a very ________ pricing strategy.

• A)need not,safe
• B)need not,risky
• C)must,safe
• D)must,risky

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Definitions:

War on Poverty

A set of government programs initiated in the 1960s in the United States aimed at reducing poverty by improving living conditions, education, and employment opportunities.

Great Society

A set of domestic programs launched by President Lyndon B. Johnson in the 1960s aimed at eliminating poverty and racial injustice, and to improve education, healthcare, and welfare in the United States.

Annual Income

The total amount of money earned by an individual or entity in one year from all sources before taxes.

Kerner Report

A landmark 1968 report that investigated the causes of the 1967 race riots in the United States and provided insight into racial discrimination and inequality.