If relative prices are changing, we can definitely state that...(2)
What will be an ideal response?
1) some prices may be rising and some may be falling
2) a particular good's price has become more or less expensive in comparison to other goods
You might also like to view...
One reason the aggregate demand curve is downward sloping is because of the
A) interest rate effect. B) tariff effect. C) welfare effect. D) price effect.
When a market is in disequilibrium consumers and producers change their behavior. As a result the market reaches equilibrium
Indicate whether the statement is true or false
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
The condition to decide on the optimal amount of leisure is that:
A) the average benefit of leisure should be equal to zero. B) the total benefit of leisure should be equal to the wage rate. C) the average benefit of leisure should be equal to the wage rate. D) the marginal benefit of leisure should be equal to the wage rate.