An increase in price will decrease demand.
Answer the following statement true (T) or false (F)
False
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According to real business cycle theory,
A. monetary factors affecting aggregate demand cause macroeconomic instability. B. when real wages fall during recessions, "real" unemployment rates rise. C. recessions result from declines in long-run aggregate supply, rather than decreases in aggregate demand. D. the net long-run costs of business fluctuations are severe.
Show what happens to the industry equilibrium when new firms enter a perfectly competitive market in the long run.
What will be an ideal response?
If the central bank keeps the money supply growth rate constant, but people raise their inflation expectations by 1 percentage point, then the short-run Phillips curve shifts
a. right and the unemployment rate rises. b. right and the unemployment rate falls. c. left and the unemployment rate rises. d. left and the unemployment rate falls.
An import quota is a limit on the
A. amount of a product that may be imported. B. number of foreign workers allowed to work in a country. C. number of container ships allowed to enter the territorial waters of the United States. D. value of low-priced foreign goods that are allowed to be imported into the United States.