Most economists believe that the major
macroeconomic importance of labor markets is that
transmit disturbances from one sector to another.
are the major source of economic disturbances.
dampen instabilities caused in other
fail to adjust rapidly from
When drawing aggregate demand and
aggregate supply curves, an upward-sloping aggregate
supply curve shows what happens to production
prices have adjusted completely.
there is price stickiness.
all disturbances are monetary.
fiscal policy is used with a lag.