Firms that have downward-sloping demand curves:
a. earn positive economic profits even in the long run.
b. produce homogeneous products.
c. operate in a perfectly competitive market structure.
d. enjoy monopoly or market power.
e. are price takers.
d
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Other things remaining the same, if an industry introduces a labor-complementary technology in production, the demand curve for labor in that industry is likely to:
A) shift to the left. B) shift to the right. C) become vertical. D) become horizontal.
Using aggregate demand and aggregate supply, explain what happens in the short run if the Federal Reserve raises interest rates in the economy. Be sure to detail what happens to aggregate demand, the price level, the level of GDP, and unemployment
Assume that the economy is at full employment before the interest rate increase.
Economists regard both currency and deposits as money
Indicate whether the statement is true or false
Behavioral economics deals with
A) the assumption that people are always selfish. B) bounded rationality. C) unbounded willpower. D) only theories without justification from empirical evidence.