The short-run macro model
a. is an attempt to explain why the economy tends to perform better in the short run than in the long run
b. was developed during the Great Depression to explain the economy's continuing poor performance
c. lost its popularity during the 1950s
d. was developed during the early 19th century
e. explains the forces that work to drive the economy to full employment
B
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How much a firm must charge to sell any given quantity of their product is described by a(n):
A. demand curve. B. supply curve. C. inverse demand function. D. production function.
Adverse selection and moral hazard are two different terms that mean essentially the same thing.
Answer the following statement true (T) or false (F)
Holding demand constant, an increase in supply leads to
A) lower prices and higher quantity demanded. B) lower prices and lower quantity demanded. C) higher prices and higher quantity demanded. D) higher prices and lower quantity demanded.
Refer to the graph below. If Qf is potential GDP, wages and prices are flexible, then the long-run aggregate supply curve will be:
A. AS2
B. AS1
C. A vertical line at Qf
D. A vertical line at Q1