If a firm can increase its sales only by lowering its price, then
A) the firm is a price searcher.
B) the firm's marginal revenue will be less than price.
C) the demand curve for the firm's product is negatively sloped.
D) all of the above are true.
D
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The rational expectations hypothesis implies that when macroeconomic policy changes
A) the economy will become highly unstable. B) the way expectations are formed will change. C) people will be slow to catch on to the change. D) people will make systematic mistakes.
Terry wants to sell his car and the lowest price he is willing to accept is $3,000 . Alice likes the car and is willing to pay at most $4,000 for it. What is the headroom for them?
a. Prices up to $1,000 b. Price range between $3,000 and $4,000 c. Prices above $4,000 d. Prices below $3,000
If there is a "long and variable time lag" between when a change in monetary policy is instituted and when it impacts aggregate demand and output, this will
What will be an ideal response?
The quantity measure in the aggregate demand relationship is the:
A. total quantity of goods and services supplied in the economy. B. market value of the total quantity of goods and services demanded in the economy. C. total quantity of goods and services demanded in the economy. D. market value of the total quantity of goods and services supplied in the economy.