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Title: Suppose nominal aggregate demand falls by 3 percent while nominal wages are fixed. If firms were to ... Post by: bedau on Jul 27, 2017 Suppose nominal aggregate demand falls by 3 percent while nominal wages are fixed. If firms were to lower their prices by 3 percent, this would ________ the drop in real output, with such pricing ________ an assumption that firms are profit-maximizers.
A) prevent, in violation of B) prevent, consistent with C) worsen, in violation of D) worsen, consistent with Title: Re: Suppose nominal aggregate demand falls by 3 percent while nominal wages are fixed. If firms were ... Post by: thecrom on Jul 27, 2017 Content hidden
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