Consumer equilibrium requires that the marginal utility per dollar spent be the same for all goods
a. True
b. False
Indicate whether the statement is true or false
True
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Of the four factors that influence asset demand, which factor will cause the demand for all assets to increase when it increases, everything else held constant?
A) wealth B) expected returns C) risk D) liquidity
Whenever the price of Good A decreases, the demand for Good B increases. Good A and B appear to be: a. complements. b. substitutes
c. inferior goods. d. normal goods.
Assume that markets clear. If in the labor market there is
a. an excess supply of labor, wages will rise b. an excess demand for labor, wages will fall c. an excess demand for labor, wages will rise d. an excess supply of labor, wages stay constant e. a decline in labor demand, wages will rise
In the monetarist version of the AD-AS framework, starting from long-run equilibrium, a decrease in velocity produces
A) no change in Real GDP in the short run or the long run. B) a rise in Real GDP in both the short run and the long run. C) a fall in Real GDP in both the short run and the long run. D) a fall in Real GDP in the short run, but not in the long run. E) no change in Real GDP in the short run, but a rise in the long run.