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Question 6 The reason that nominal wages are sticky because: Not yet answered Select one: Marked out of a. in the long run all wages are adjusted for inflation. 0.50 O b. wages are slow to fall when there are labour shortages and slow to P Flag rise even when the level of unemployment is significant. question c. wages remain fixed in the long run, increasing the profitability of the firms. O d. wages are slow to rise when there are labour shortages and slow to fall even when the level of unemployment is significant. Question 7 Which statement is FALSE with respect to short-run and long-run aggregate Not yet supply? answered Marked out of Select one: 0.50 a. If the economy experiences changes in government regulations, then P Flag the short run supply will shift, but not the long run supply question b. If the economy experiences a natural disaster that destroys resources both the short run supply and long run supply will decrease c. If the economy is on the short-run aggregate supply curve, it cannot also be on the long-run aggregate supply curve. d. The economy can be on both curves simultaneously. Question 8 Not yet A bill is passed in Canada requiring that the budget is balanced at all times. This would mean that answered Marked out of Select one: 0.50 P Flag Oa. automatic stabilizers would be the only effective way to create a question balanced budget b. it would increase the effectiveness of discretionary fiscal policy O c. automatic stabilizers could not work on the economy since deficits could be created during recessions Od. monetary policy could not operate Question 9 If the government decreases taxes this will shift the aggregate demand curve Not yet by_ answered than a change in government spending for goods and services and has a_ _ effect on real GDP. Marked out of 0.50 Select one: P Flag question a. more; smaller b. less; smaller O c. less; larger d. more; larger Question 10 If the Bank of Canada wants to increase the money supply, it could: Answer saved Marked out of Select one: 0.50 a. increase the bank rate. Flag b. cut taxes across the board. question c. lower the reserve requirement. O d. buy Canadian bonds in the overnight market Clear my choice