In the long run, shifts in the aggregate demand curve affect the price level but not the level of output.
Answer the following statement true (T) or false (F)
True
Because the AS curve is vertical in the long run, a change to AD, which intersects the vertical AS curve at a different point, will result in a change in the price level only.
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The benevolent social planner wants to extract the ________ the limited resources we have been given, and her objective is to ________ the size of the economic pie
A) greatest amount of happiness from; minimize B) greatest amount of happiness from; maximize C) least productive of; minimize D) least productive of; maximize
Vertical contracts between manufacturers and retailers often aim to
a. Incentivize the manufacturer to undertake costly activities, which they otherwise may not realize the full benefits of on their own b. Reward the retailer for undertaking the risk inherent in introducing a new product c. Serve as a "signal" of the retailer's belief of the likely success of his product d. All of the above
Game theory tells us that in the ultimatum game:
A. the threat to reject is credible and is expected to increase the amount given. B. the threat to reject in not credible, and is not expected to increase the amount given. C. the threat to reject is credible, but is not expected to increase the amount given. D. the threat to reject in not credible, but still is expected to increase the amount given.
A tax on an imported good is called
a. a subsidy b. dumping c. a quota d. a tariff e. restricted trade