If your income is fixed and the economy experiences inflation, your ability to purchase goods and services rises.
Answer the following statement true (T) or false (F)
False
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There are three leading manufacturers of smart phones in Techland. Their products are considered to be perfect substitutes
a) Will these firms earn zero economic profits in the long run? Explain your answer. b) What can the firms do to earn maximum profit?
Economics is most precisely defined as
A) a study of what people need to survive. B) a study of how culture evolves in different geographic areas. C) the same as the study of finance and management. D) the study of how people make choices.
In the circular flow diagram, money income and revenue ______.
a. are flowing in the same direction
b. form a hub that other items flow around
c. are both elements of the input market
d. represent forms of capital
Along the classical or vertical range of the aggregate supply curve, an increase in the aggregate demand curve will increase:
A. both the price level and real GDP. B. only real GDP. C. only the price level. D. real GDP and reduce the price level.