What are the four key functions of prices in the market system?
What will be an ideal response?
Prices reflect the desire buyers have for a product, they reflect the abundance or scarcity of a product, they serve as a means of communication between buyers and sellers and therefore help determine what will be produced and in what quantities, and they help coordinate all phases of production so producers have the right quantities of needed resources, in the right place, to operate.
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The natural rate of employment
a. will change with changes in the long run aggregate supply curve. b. will be a level such that the expected real wage equals the actual real wage. c. will be at a level where the actual and expected price levels are equal. d. both a and c. e. all of the above.
The prime rate is a lagging indicator
a. True b. False Indicate whether the statement is true or false
What is the self-correcting mechanism that firms have and government agencies do not have?
a. Competitors b. Annual budgets c. Technology restrictions d. Unskilled employees
The short run:
A. means that output cannot be changed. B. means the price of output is fixed. C. means the firm cannot increase or decrease at least one of its inputs. D. All of these are true.