A decrease in aggregate demand in the Classical model leads to
A) lower prices and lower output.
B) lower prices and higher output.
C) lower prices and unchanged output.
D) unchanged prices and output.
C
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The following data relate to the supply schedule of a product.PriceQuantity Supplied$51001020015250203002535030500Using the regular percentage change formula, what is the price elasticity of supply when price decreases from $10 to $5?
A. perfectly elastic B. unit elastic C. elastic D. inelastic
A country's labor demand curve shifted to the right after the adoption of a new technology. This implies that the use of the new technology ________, assuming all else equal
A) reduced the marginal product of labor B) lowered the minimum wage that firms need to pay C) increased the minimum wage that firms need to pay D) increased the marginal product of labor
The AS/AD model studies the relationship between
A) the price level and unemployment. B) the price level and real GDP. C) unemployment and real GDP. D) nominal GDP and inflation.
The mutually understood customs the two parties involved in a transaction follow from experience are known as _____
a. focal points b. norms c. cores d. strategies