Negative real shocks and negative demand shocks:
A. commonly come together.
B. are shown in the AD/AS model in the same way.
C. usually do not happen at the same time.
D. have the same basic causes.
Ans: A. commonly come together.
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Overuse of a common resource may be avoided by all of the following methods except
A) charging for the use of a common resource. B) government taking over ownership of all private common resources. C) setting quotas or legal limits on the quantity of the common resource consumed. D) issuing tradable permits for the use of a common resource.
In the last three decades of the 19th century, the long-run supply track of farm prices
(a) indicates a decline in farm prices due to a slowly increasing demand and a more rapidly increasing supply. (b) indicates a decline in farm prices due to a slowly increasing supply and a more rapidly increasing demand. (c) indicates an increase in farm prices due to a slowly increasing supply and a more rapidly increasing demand. (d) indicates relatively constant prices due to the fact that supply and demand were both increasing at about the same rate.
A change in relative factor prices will always result in
A) a change in the slope of the isoquants. B) a tangency between the new isocost line and a new isoquant. C) a rotation of the isocost lines. D) All of the above.
Managers of profit centers are usually given a lot of discretion because
a. They always do an excellent job b. They rarely do a good job c. The company can never judge their performance d. It is relatively easy to tie management pay to division performance