In the context of aggregate supply, the long run is defined as the period during which
a. some prices are set by contracts and cannot be adjusted.
b. prices can change, but neither aggregate supply nor aggregate demand can shift.
c. individuals have sufficient time to modify their behavior in response to price changes.
d. quantity changes cannot occur in response to changes in relative prices.
C
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In Table 1, pizzas are classified as a(n)
A) normal good. B) positive good. C) inferior goods. D) marginal good.
An association of producers that fixes common prices and output quotas is known as a
A) cartel. B) common selling organization. C) joint-marketing arrangement. D) trade association.
If an individual's demand is elastic and price increases, what happens to total utility (TU), marginal utility (MU), consumer surplus (CS), and total expenditure (TE)?
a. TU increases, MU decreases, CS decreases, and TE decreases b. TU increases, MU increases, CS increases, and TE decreases c. TU decreases, MU increases, CS decreases, and TE increases d. TU decreases, MU decreases, CS decreases, and TE decreases e. TU decreases, MU increases, CS decreases, and TE decreases
Which of the following schools of thought believes that the major source of the macroeconomic problems are the disequilibria in the private labor and goods market?
a. Keynesians and new Keynesians b. Only monetarists c. Only new classical economists d. Monetarists and new classical economists e. Monetarists and Keynesians