In our modern economy, the adjustment process necessary to eliminate a recessionary gap is very rapid
a. True
b. False
Indicate whether the statement is true or false
False
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Menu costs are a possible reason for
A) swings in the labor force participation rate. B) low levels of consumer confidence in response to aggregate supply shocks. C) aggregate supply shocks. D) sticky product prices.
The European central bank is located in Frankfurt, Germany
Indicate whether the statement is true or false
A price floor is a reasonable price control mechanism to impose in cases where the government believes the market's equilibrium price
a. creates an excess supply that will force price downward b. is too high c. creates an excess demand that will force price upward d. is too low e. is higher than the market price
Monopoly rights provided by patents are awarded to
a. encourage profit making b. guarantee competitive prices c. encourage competition d. the "first come, first served" e. encourage research and development