Question 1

Which of the following statements about price stickiness or flexibility is true?

Accepted Answer

A)  Prices of many raw materials are less flexible than the prices of final goods and services 
B)  Prices of many raw materials are much more flexible than the prices of final goods and services 
C)  Prices of many raw materials are about as flexible as the prices of final goods and services 
D)  Prices of many raw materials are only slightly more flexible than the prices of final goods and services 
A)  Prices of many raw materials are less flexible than the prices of final goods and services 
B)  Prices of many raw materials are much more flexible than the prices of final goods and services 
C)  Prices of many raw materials are about as flexible as the prices of final goods and services 
D)  Prices of many raw materials are only slightly more flexible than the prices of final goods and services

Question 2

For which of the following goods is the price least likely to be flexible?

Accepted Answer

A)  Airline tickets 
B)  Beer 
C)  Milk 
D)  Newspapers 
A)  Airline tickets 
B)  Beer 
C)  Milk 
D)  Newspapers

Question 3

If prices of goods and services are free to quickly adjust, then:

Accepted Answer

A)  A negative demand shock would lead to increased unemployment in the short run 
B)  A positive demand shock would lead to increased unemployment in the short run 
C)  A negative demand shock would have no short-run effect on unemployment 
D)  There would be no short-run demand shocks 
A)  A negative demand shock would lead to increased unemployment in the short run 
B)  A positive demand shock would lead to increased unemployment in the short run 
C)  A negative demand shock would have no short-run effect on unemployment 
D)  There would be no short-run demand shocks

Which of the following statements about price stickiness or flexibility is true?

For which of the following goods is the price least likely to be flexible?

If prices of goods and services are free to quickly adjust, then:

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, and Debt

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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Exam 6: An Introduction to Macroeconomics

Which of the following statements about price stickiness or flexibility is true?

For which of the following goods is the price least likely to be flexible?

If prices of goods and services are free to quickly adjust, then:

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, and Debt

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

Filters