Select one fro the given options a.The sticky wage model of AS: I. explains the vertical AS in the short run. ii. assumes flexible prices and nominal wages. iii. assumes flexible prices and sticky real wages. iv. explains the short-run deviations of the actual output from the potential one b. Choose the correct statement: i. According to the Life-cycle hypothesis the consumption changes only with unexpected changes in income. ii. Consider the life cycle hypothesis. The human consumption function in the form C = 0.025W + 0.5Y implies that life expectancy is 40 years iii. Consider the life cycle hypothesis. The human consumption function in the form C = 0.025W + 0.5Y implies that a half of one's life expectancy is spent in retirement iv. Consider the life cycle hypothesis. The human consumption function in the form C = 0.025W + 0.5Y implies that consumption will increase by CZK 25, when wealth will increase by CZK 1,00
1.Select one fro the given options
a.The sticky wage model of AS:
I. explains the vertical AS in the short run.
ii. assumes flexible
iii. assumes flexible prices and sticky real wages.
iv. explains the short-run deviations of the actual output from the potential one
b. Choose the correct statement:
i. According to the Life-cycle hypothesis the consumption changes only with unexpected changes in income.
ii. Consider the life cycle hypothesis. The human consumption function in the form C = 0.025W + 0.5Y implies that life expectancy is 40 years
iii. Consider the life cycle hypothesis. The human consumption function in the form C = 0.025W + 0.5Y implies that a half of one's life expectancy is spent in retirement
iv. Consider the life cycle hypothesis. The human consumption function in the form C = 0.025W + 0.5Y implies that consumption will increase by CZK 25, when wealth will increase by CZK 1,00
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