An increase in the price of the good measured along the vertical axis will cause the budget line to
A. shift outward.
B. shift inward.
C. become steeper.
D. become flatter.
D. become flatter.
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The United States is an example of a mixed economy.
Answer the following statement true (T) or false (F)
An economic variable that moves in the opposite direction as aggregate economic activity (down in expansions, up in contractions) is called
A) procyclical. B) countercyclical. C) acyclical. D) a leading variable.
Changes in the capital stock are caused by changes in ________
A) the quantity of labor B) depreciation and investment C) depreciation and entrepreneurship D) depreciation and the quantity of labor
A price taking firm’s short-run supply curve is perfectly elastic at the market price.
Answer the following statement true (T) or false (F)