If expectations are formed rationally, wages and prices are not completely flexible in the short run, and policy is correctly anticipated, increases in aggregate demand will stimulate the economy to higher levels of Real GDP and lower levels of unemployment in
A) the short run or the long run.
B) neither the short run nor the long run.
C) the short run, but not in the long run.
D) the long run, but in not the short run.
C
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Charging different prices to different consumers for the same product when the price differences are not due to differences in cost is called arbitrage
Indicate whether the statement is true or false
Refer to the table below. If the cost per unit of advertising is constant at $475, what is the level of advertising per week that maximizes the industry joint profit?
Suppose the egg industry is made up of only the three farms above; Happy Chickens, Special Chickens, and Superior Chickens.
A) 1
B) 2
C) 3
D) 4
If I buy 3 cups of coffee, paying $1 for each cup, and I would have been willing to pay up to $3 for the first cup, up to $2 for the second cup, and up to $1 for the third cup, then my consumer surplus is:
a. $6. b. $5. c. $3. d. $2. e. $1.
What are the economic effects of imposition of a new occupational license or examination on a labor market?
What will be an ideal response?