The real balance effect is one of the
A) reasons why an AD curve is downward-sloping.
B) shifters of an AD curve.
C) reasons why a short-run aggregate supply curve can be derived.
D) shifters of a short-run aggregate supply curve.
A
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The aggregate supply curve is
A) upward sloping. B) downward sloping. C) a vertical line. D) a horizontal line. E) U-shaped.
When sellers in a perfectly competitive market attempt to maximize their own profits, they:
A) eventually end up minimizing the value of total production. B) earn positive economic profits even in the long run. C) move scarce resources to their highest possible use. D) eventually divert resources toward their lower valued uses.
As an individual consumes more of a good, the marginal utility of that good declines
a. True b. False Indicate whether the statement is true or false
To say that a price ceiling is nonbinding is to say that the price ceiling
a. results in a surplus. b. is set above the equilibrium price. c. causes quantity demanded to exceed quantity supplied. d. All of the above are correct.