Prices and wages tend to be:
A. flexible both upward and downward.
B. inflexible both upward and downward.
C. flexible downward, but inflexible upward.
D. flexible upward, but inflexible downward.
D. flexible upward, but inflexible downward.
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An economy's ________ during a recession
A) labor supply curve shifts to the right B) labor demand curve shifts to the right C) labor supply curve shifts to the left D) labor demand curve shifts to the left
The average price of goods and services in the economy is also known as
A) the cost of living. B) the inflation rate. C) a market basket. D) the price level.
The idea that having ownership of an item increases the value that a person puts on the item can be explained by
a. The endowment effect b. Loss aversion c. Overconfident bias d. Anchoring bias
As the general price level in the country of Norweinshire rose, the average interest rate in the economy increased, thereby lowering aggregate expenditure. This relationship between price level, interest rate, and aggregate expenditure is referred to as the:
a. total price effect. b. interest rate effect. c. wealth effect. d. real-balance effect. e. income effect.