Answer the following statements true (T) or false (F)
1) In the very short run, demand shocks will tend to change the level of output but have little effect on prices.
2) In the very short run, firms tend to respond to demand shocks by changing their prices.
3) Negative demand shocks have a more significant impact on output and employment when
prices are flexible.
4) In the short run, firms are more likely to respond to demand shocks by altering inventory levels
than by changing how much they produce.
1) T
2) F
3) F
4) T
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Answer the next question based on the following supply and demand schedules in units per week for a product.PriceQuantity DemandedQuantity Supplied$601004005014034040180280302202202026016010300100If demand increased by 100 units at each price level, and the government set a price ceiling of $40, then there will be
A. a surplus. B. no shortage or surplus. C. decrease in supply. D. a shortage.
Indifference curves show all combinations of commodities that are equally desirable to the consumer.
Answer the following statement true (T) or false (F)
Which of the following is not a property of assets?
A) risk B) inflation. C) liquidity D) maturity
A rightward shift in the money supply curve is likely to produce a rightward shift in the aggregate demand curve
a. True b. False Indicate whether the statement is true or false