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7. Most economists believe that prices are: a) flexible in the short run but many are sticky in the long run. b) flexibl...

7. Most economists believe that prices are:

a) flexible in the short run but many are sticky in the long run.

b) flexible in the long run but many are stick in the short run.

c) sticky in both the short and long runs.

d) flexible in both the short and long runs.

8. If the short run aggregate supply curve is horizontal, then changes in aggregate demand affect:

a) level of output but not prices.

b) prices but not level of output.

c) both prices and level of output.

d) neither prices nor level of output.

9. The short run refers to a period:

a) of several days.

b) during which prices are sticky and unemployment may occur.

c) during which capital and labour are fully employed.

d) during which there are no fluctuations.

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Answer #1

7) Most economists believe that prices are:-

flexible in the long run but many are sticky in the short run.

option(B)

8) If the short-run aggregate supply curve is horizontal, then changes in aggregate demand affect:

level of output but not prices

option(A)

9) The short run refers to a period:

during which prices are sticky and unemployment may occur

option(B)

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