A decrease in the price of a good that is measured on the horizontal axis will cause the budget constraint to rotate outward (with a new larger intercept on the horizontal axis)
Indicate whether the statement is true or false
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Economics
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Which of the following economic variables is affected when the government adopts countercyclical fiscal policy?
A) Government spending B) Bank reserves C) Interest rates D) M2 measure of money supply
Economics
In a dynamic economy, there will always be some frictional unemployment
Indicate whether the statement is true or false
Economics
Explain the reason behind the declining gap between average cost (AC) and average variable cost (AVC) curves at higher levels of output
Economics
When diminishing returns set in, total output begins to decrease
Indicate whether the statement is true or false
Economics