The aggregate supply curve is
A. generally flatter as the level of resource use rises.
B. never vertical, even at full employment.
C. relatively flat at low levels of output.
D. relatively steep at low levels of output.
Answer: C
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Which of the following changes would lead, according to the Solow model, to a higher level of long-run output per worker?
A) A lower level of capital per worker B) An increase in the saving rate C) A rise in the rate of population growth D) A decrease in productivity
What is an informational cascade?
A) An excess flow of market information that makes it difficult for an investor to form a rational decision. B) A continual decline in the quality of market information from public sources due to sequential budget cuts. C) A continual increase in the quality of market information from public sources due to broader use of the internet by market participants. D) A sequence of decisions based on the actions of others rather than fundamental information.
If Harry only pays $25,000 to purchase a new car even though he would have been willing to pay as much as $35,000 for the car, this indicates that
What will be an ideal response?
Orange juice drinkers want to consume more orange juice at a lower price. Which of the following events would have this effect?
A) a decrease in the price of orange juice processing B) an increase in the cost of fertilizer used for orange groves C) a decrease in income, assuming orange juice is a normal good D) a decrease in the population