Question : 41.Stickynominalwagescanresultin a.lowerprofitsforfirmswhenthepricelevelislowerthanexpected. b.adecreaseinrealwageswhenthepricelevelislowerthanexpected. c.ashort-runaggregat : 1262153
41.Stickynominalwagescanresultin a.lowerprofitsforfirmswhenthepricelevelislowerthanexpected. b.adecreaseinrealwageswhenthepricelevelislowerthanexpected. c.ashort-runaggregate-supplycurvethatisvertical. d.along-runaggregate-supplycurvethatisupward-sloping. 42.Thesticky-wagetheoryoftheshort-runaggregatesupplycurvesaysthatthequantityofoutputfirmssupplywillincreaseif a.thepricelevelishigherthanexpectedmakingproductionmoreprofitable. b.thepricelevelishigherthanexpectedmakingproductionlessprofitable. c.thepricelevelislowerthanexpectedmakingproductionmoreprofitable. d.thepricelevelishigherthanexpectedmakingproductionlessprofitable. 43.Ifthepricelevelrisesabovewhatwasexpectedandnominalwagesarefixed,then a.productionbecomeslessprofitablesofirmswillhirefewerworkers. b.productionbecomeslessprofitablesofirmswillhiremoreworkers. c.productionbecomesmoreprofitablesofirmswillhirefewerworkers. d.productionbecomesmoreprofitablesofirmswillhiremoreworkers. 44.Ifwagesaresticky,thenagreaterthanexpectedincreaseinthepricelevel a.raisestherealcostsofproduction,sotheshort-runaggregatesupplycurveshiftsleft. b.raisestherealcostsofproduction,sotheaggregatequantityofgoodsandservicesdeclines. c.reducestherealcostsofproduction,sotheshort-runaggregatesupplycurveshiftsright. d.reducestherealcostsofproduction,sotheaggregatequantityofgoodsandservicesrises. 45.Whichofthefollowingcanexplaintheupwardslopeoftheshort-runaggregatesupplycurve? a.nominalwagesareslowtoadjusttochangingeconomicconditions b.asthepricelevelfalls,theexchangeratefalls c.anincreaseinthemoneysupplylowerstheinterestrate d.anincreaseintheinterestrateincreasesinvestmentspending 46.Otherthingsthesame,ifworkersandfirmsexpectedpricestoriseby2percentbutinsteadtheyriseby3percent,then a.employmentandproductionrise. b.employmentrisesandproductionfalls. c.employmentfallsandproductionrises. d.employmentandproductionfall. 47.Otherthingsthesame,ifworkersandfirmsexpectedinflationtobe2%,butitisonly1%then a.employmentandproductionrise. b.employmentrisesandproductionfalls. c.employmentfallsandproductionrises. d.employmentandproductionfall. 48.Otherthingsthesame,ifpricesfellwhenfirmsandworkerswereexpectingthemtorise,then a.employmentandproductionwouldrise. b.employmentwouldriseandproductionwouldfall. c.employmentwouldfallandproductionwouldrise. d.employmentandproductionwouldfall. 49.Iftherearestickywages,andthepricelevelisgreaterthanwhatwasexpected,then a.thequantityofaggregategoodsandservicessuppliedfalls,whichisshownbyashiftoftheshort-runaggregatesupplycurvetotheleft. b.thequantityofaggregategoodsandservicessuppliedfalls,asshownbyamovementtotheleftalongtheshort-runaggregatesupplycurve. c.thequantityofaggregategoodsandservicessuppliedrises,asshownbyashiftoftheshort-runaggregatesupplycurvetotheright. d.thequantityofaggregategoodsandservicessuppliedrises,asshownbyamovementtotherightalongtheshort-runaggregatesupplycurve. 50.Anunexpectedincreaseinthepricelevelthattemporarilylowersrealwagesandinducesmoreemploymentandoutputinaneconomy,occursin a.nominal-supplytheory. b.stagflation. c.misperceptionstheory. d.sticky-wagetheory.