A recessionary real shock is associated with an outward shift of the short-run Phillips curve and with a leftward shift of the short-run aggregate supply curve
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following average cost functions suggests the presence of a natural monopoly?
A) AC = 2 B) AC = 100/Q + 2 C) TC = 100/Q + 2Q D) All of the above.
Projection bias:
A. is the tendency to evaluate future consequences based on tastes and needs at the moment of the decision making. B. is the tendency to project future states of mind into the present. C. can lead people to overestimate their adaptability. D. All of these are true about project bias.
Higher prices can discourage use/consumption, which in turn may better allocate scarce resources.
Answer the following statement true (T) or false (F)
If coffee and cream are complements, an increase in the price of coffee will cause
a. the demand for cream to increase. b. the demand for cream to fall. c. the demand for coffee to fall. d. no change in the demand for cream; only quantity demanded would be affected.