Short-run aggregate supply is greater than long-run aggregate supply in the misperceptions theory if
A. the actual price level equals the expected price level.
B. output is less than its full-employment level.
C. the actual price level is greater than the expected price level.
D. the actual price level is less than the expected price level.
Answer: C
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The market demand curve is the horizontal summation of all individual demand curves.
Answer the following statement true (T) or false (F)
Lionel's Lawn Care is a company that maintains residential yards. Lionel's cost for his standard package of mowing, edging, and trimming is $15, and he charges $25 for this service
For a total price of $40, Lionel will also trim shrubs, a service that adds an additional $10 to the total cost of the standard package. What is Lionel's marginal cost of adding the shrub-trimming service to the standard package? A) $15 B) $40 C) $10 D) $25
Deposit insurance can lead to ________
A) an increase in adverse selection B) a decrease in bank costs C) a decrease in bank lending rates D) an increase in risks banks take on
Efficient solutions to solving externality problems:
A. are always supported by the government. B. increase surplus for everyone in society. C. are not always supported in political arenas. D. decrease surplus for everyone in society.