If the cross-price demand curve for capital (relative to the wage) is vertical, the short run response by a firm to an increase in the wage is the same as its long run response.
Answer the following statement true (T) or false (F)
True
Rationale: See Graph 13.9 in the text.
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Hyperinflation is defined as periods of
A) inflation over 25 percent per year B) negative price changes. C) low inflation. D) inflation over 50 percent per month. E) inflation under 10 percent per year.
Historical evidence suggests that:
A) command economies perform better than free economies in the long run. B) free economies perform better than command economies in the long run. C) social surplus is maximized in a command economy. D) social surplus is minimized in a free economy.
Refer to Figure 2-8. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of both pineapples and coconuts?
A) Costa Rica B) Guatemala C) neither country D) cannot be determined
Expansionary monetary policy will only temporarily depress interest rates in a basic proposition of the __________ school.
Fill in the blank(s) with the appropriate word(s).