With a Nominal Price Rigidity

question 10

Multiple Choice

With a nominal price rigidity:

• A) firms cannot charge the market clearing price.
• B) all prices are the same.
• C) wages are also always fixed.
• D) inflationary expectations are constant.
• E) monetary policy is transparent.

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Definitions:

Ocean Currents

Large-scale movements of seawater, primarily driven by wind patterns and differences in water density.

Warm Current

A flow of warmer ocean water that moves in a defined direction and can influence the climate of nearby land areas.

Sea-Surface Temperatures

The temperature of the surface layer of the oceans, which can significantly influence weather and climate patterns.

El Niño

A condition that occurs when warmer-than-average ocean surface temperatures occur in the central and east-central Equatorial Pacific.