According to the "misperception effect" explanation of short-run aggregate supply, firms increase output as the price level rises because they mistake the increase in overall prices for an increase in the relative price of their own output
a. True
b. False
Indicate whether the statement is true or false
True
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The Resolution Trust Corporation was created by the FIRREA in order to
A) manage and resolve insolvent S&Ls. B) build up trust in government regulation. C) regulate the S&L industry. D) purchase large amounts of government debt.
What has happened to resource prices in the twentieth century and what do they reveal about resource scarcity?
Here are the costs of going to college: tuition $5,000; books $200; housing $1,000; food $1,000; lost income from work $10,000. Studying and work are equally desirable in your mind. Suppose that you could work part-time and make $5,000 at a job you would volunteer to do. You live on campus instead of at home. What is the cost of going to school?
A. $7,200 B. $11,200 C. $5,200 D. $16,200
Guns and butter represent the classic societal tradeoff between spending on which two items?
a. national defence and consumer goods b. imports and exports c. law enforcement and agriculture d. durable and nondurable goods