If the investment demand curve is very steep, then Fed monetary policy will have a relatively small impact on planned investment, and thus on aggregate demand
Indicate whether the statement is true or false
true
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
A seller is willing to sell a product only if the seller receives a price that is at least as great as the
a. seller's producer surplus. b. seller's cost of production. c. seller's profit. d. average willingness to pay of buyers of the product.
Based on the graph showing the 2016 U.S. health dollar, most health care dollars go to ______.
a. prescription drugs
b. nursing homes
c. hospital care
d. physician care
A firm is unlikely to hire a worker if:
A. there are diminishing marginal returns to labor. B. the minimum wage set by law is less than the equilibrium wage in the market. C. the additional revenue generated by hiring the worker is less than his or her wage. D. the additional output a firms gets by hiring the worker is greater than his or her wage.