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Macroeconomics

-1. Most economists believe that prices are: A) B) C) D) flexible in the short run but many are sticky in the long run. flexible in the long run but many are sticky in the short run. sticky in both the short and long runs. flexible in both the short and long runs. 2. The aggregate demand curve is the relationship between the quantity of output demanded and the A) positive; money supply B) negative; money supply C) positive; price level D) negative; price level _ 3. Which of the following is an example of frictional unemployment? A) B) C) Dave searches for a new job after voluntarily moving to San Diego. Elaine is willing to work for less than the minimum wage, but employers cannot hire her. Bill is qualified and would like to be an airline pilot, but airlines do not find it profitable to hire him at the wage established by the airline pilots union. Juan is willing to work at the going wage, but there are no jobs available. D) Page I
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