If suppliers expect an increase in price, they will reduce the current supply of a good
a. True
b. False
A
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The demand curve is a graphic representation of:
a. the relationship between price and quantity supplied of a certain good or service. b. the relationship between price and quantity demanded of a certain good or service. c. the relationship between supply and demand for a certain good or service. d. the relationship between productivity and quantity demanded of a certain good or service.
The Friedman natural rate theory is based on rational expectations and is also called the new classical theory
Indicate whether the statement is true or false
According to Keynes, unemployment results from
A. Flexible wages and price. B. Increased business investment that reduces consumer spending. C. Insufficient spending on the part of consumers, business, and government. D. Increased government spending that reduces consumer spending.
We would expect unions to have a more difficult time negotiating higher wages for their members when
A) labor represents a small portion of total costs. B) the product produced makes up a small portion of families' budgets. C) the product produced has several close substitutes. D) there are not good substitutes for labor in the production process.