When supply for an item is perfectly inelastic, how does the supply change when there is a steep drop in price?
a. increases
b. decreases
c. does not change
d. is eliminated
c. does not change
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An increase in the price level leads to
A) an upward movement along the aggregate supply curve. B) a downward movement along the aggregate supply curve. C) a leftward shift of the aggregate supply curve. D) a rightward shift of the aggregate supply curve. E) neither a movement along the aggregate supply curve nor a shift of the aggregate supply curve.
When economies of scale exist, an increase in the level of output will lead to: a. a decrease in cost per unit. b. an increase in cost per unit. c. a decrease in total cost
d. both a. and c. above
The scientific method is:
A. not applicable to economics because economics deals with human beings. B. also known as the economic perspective. C. analysis that moves from broad generalizations called laws to theories and then to hypotheses. D. used by economists and other social scientists, as well as by physical scientists and life scientists, to formulate and test hypotheses.
Okun's law relates ________ to ________.
A. inflation; unemployment B. output; employment C. output; unemployment D. inflation; output