If a large number of laborers shift from fixed-wage contracts to wages that depend on the cost of living adjustments, the long-run aggregate supply curve for the economy will become relatively steeper
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following changes would NOT shift the aggregate demand curve?
A) a change in fiscal policy B) a change in monetary policy C) a change in expectations about future income D) an increase in technology
Which of the following statements is false?
A) Marginal cost will equal average total cost when marginal cost is at its lowest point. B) When marginal cost is greater than average total cost, average total cost will rise. C) Marginal cost will equal average total cost when average total cost is at its lowest point. D) When marginal cost is less than average total cost, average total cost will fall.
Which of the following is not a condition for perfect competition to exist:
a) There are a small number of firms in the industry. b) All firms are producing the same product. c) It is easy to either enter or exit the industry. d) All of the above apply.
Given that milk and cookies are complements, suppose the price of flour (an ingredient in cookies) rises. What happens in the market for cookies?
A) The equilibrium price and quantity rise. B) The equilibrium price rises, and the equilibrium quantity falls. C) The equilibrium price and quantity fall. D) The equilibrium price falls, and the equilibrium quantity rises.