Consider the following statement: If all nominal wages and prices adjusted instantly, there would be no business

Question:

Consider the following statement: “If all nominal wages and prices adjusted instantly, there would be no business cycle.”Do you agree with this statement? Briefly explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics

ISBN: 9780132109994

1st Edition

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

See More Books

Question Posted: Feb 04, 2016 06:45 AM

See More Questions

Consider the following statement: The IS curve slopes downward because a fall in short-term nominal interest rates increases the money supply and decreases investment spending. Do you agree with this...
Consider the following statement: Because wages and prices are sticky, the Phillips curve relationship between inflation and the output gap is valid only when the output gap is positive. Do you agree...
Consider the following statement: Rational expectations assumes that all people are completely rational, and because this probably is not true, this theory doesnt help explain price behavior. Do you...
On July 1, 2021, Katrina purchased tax-exempt bonds (face value of $75,000) for $82,000. The bonds mature in five years, and the annual interest rate is 3%. a. How much interest income and/or...
Answer the following questions. Provide explanations for each: a. A customer purchases $20,000 of goods. The goods will be paid for in cash in three years. How much revenue should be recorded on the...
DeMagistris Fashion Company, based in New York City, imports leather coats from Acua Leather Goods, a reliable and longtime supplier, based in Buenos Aires, Argentina. Payment is in Argentine pesos....
Understand the nature of creativity and how it contributes to managerial work. LO.1
a. For each of the four columns of the table, classify the data as either qualitative or quantitative; if quantitative, further classify it as discrete or continuous. Also identify the variable under...
A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firms production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces...
RXN's year end is on December 31 On November t, 2019 when the U.S. dollar was worth CDNS1.365, RXN soid merchandese to an American cient for USS300.000. Full payment of this invoice was expected by...
In Chapter 7, we saw that one possible explanation for higher natural rates of unemployment in Western Europe than the United States was stronger unions. Strong unions may also increase the severity...
What effect would each of the following factors have on the stickiness of nominal wages and prices? Would these factors increase or decrease the severity of the business cycle? a. Grocery stores...
Automated controls supplement manual safeguards in checking source documents for reasonableness and propriety. Which of the following is not a data entry control? a. A sign check b. A range check c....
In Exercises 29 and 30, find the probabilities and indicate when the "5% guideline for cumbersome calculations" is used. 29. Medical Helicopters In a study of helicopter usage and patient survival,...
Introduction to Internetworking Project 1: Ctrl-Alt-Del Inc. INTRODUCTION You have accepted a contract to participate in the design of the network infrastructure of a company called Ctrl-Alt-Del Inc....
Construct Arguments Tell whether each statement is always true, sometimes true, or never true. Explain. a. An integer is a whole number. b. A natural number is a rational number. c. An irrational...
Please answer the following Questions : 1. Who are the competitors for Whole Foods? 2. Do you consider traditional supermarkets to be competitors for natural and organic supermarkets? 3. How would...
LNC Corp is trying to determine the effect of its inventory turnover ratio and DSO on its cash conversion. Credit sales in 2016 is $101,000, cost of goods sold will be 70% of sales and it earned a...
Assume the required reserve ratio is 20 percent. a. If a single bank in the banking system has $10 million in excess reserves, how much new money, at most, could it create by itself? b. If the whole...
Refrigerant R-12 at 30C, 0.75 MPa enters a steady flow device and exits at 30C, 100 kPa. Assume the process is isothermal and reversible. Find the change in availability of the refrigerant.
Rapid Delivery Corporation was created on January 1, 20X2, and quickly became successful. On January 1, 20X6, the owner sold 80 percent of the stock to Samuelson Company at underlying book value....
Draw demand, MR, MC, AVC, and ATC curves that show a monopolist operating at a loss that would cause it to stay open in the short run, but exit the industry in the long run. Then, show how a...
Answer the following: a. Complete the following table and use it to find this monopolists short-run profit-maximizing level of output. How much profit will this firm earn? b. Redo the table to show...
In the short run, a monopoly uses both fixed and variable inputs to produce its output. Draw a diagram illustrating a monopoly breaking even. Then alter your graph to show why, if the price of using...
Relate PSA (Public Securities Association) speed to the average life of a MBS. Describe the PSA measure and discuss which MBS would have the greater average life, one with a PSA of 100 or one with a...
Which of the following statement about swaps is least accurate? A. In a plain vanilla interest rate swap, the notional principal is swapped. B. The default problem [i.e. default risk] is the most...
7. How much would be in your savings account in nine years after depositing $340 today if the bank pays 9 percent per year? (Do not round intermediate calculations. Round your answer to 2 decimal...

Consider the following statement: If all nominal wages and prices adjusted instantly, there would be no business

Question:

Step by Step Answer:

To conclude that I can say that the business c...View the full answer

Macroeconomics

Students also viewed these Chemical Engineering questions