The long-run aggregate supply analysis assumes that ________.
A. input prices are fixed while product prices are variable
B. both input and product prices are variable
C. both input and product prices are fixed
D. input prices are variable while product prices are fixed
Answer: B
You might also like to view...
Suppose that the owner of a local ice cream store, knowing that demand for ice cream is higher when the weather is warmer, always charges a price in cents for a scoop of ice cream that is equal to two times the current outdoor temperature, measured in Fahrenheit (so that if it is 90 degrees outside, the ice cream is $1.80 per scoop). This type of behavior is ________.
A. exactly the type of behavior that Keynes believed most firms exhibit. B. free from menu costs. C. inconsistent with the key assumption upon which the basic Keynesian model is built. D. known as meeting demand.
A price level increase tends to reduce net exports, thereby reducing the amount of real goods and services purchased in the United States. Economists refer to this phenomenon as
A) the barrier effect. B) the Gross Domestic Product (GDP) effect. C) the open-economy effect. D) the wealth effect.
Public service announcements, mandatory health warnings on cigarette packages, and the prohibition of cigarette advertising on television are all policies aimed at shifting the demand curve for cigarettes to the right
a. True b. False Indicate whether the statement is true or false
GNI and PPP data are useful because they provide a dynamic analysis of economic development.
a. true b. false