An example of a price shock is ________
A) an increase in wages as a result of higher expected inflation
B) the arrival of immigrants seeking employment
C) the decline in autonomous spending that results from rising unemployment
D) all of the above
E) none of the above
E
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What role have remittances and direct foreign investment played in Guatemala, Costa Rica, and Honduras?
What will be an ideal response?
The above figure shows the situations of a monopolistic competitor in the short run. To maximize profits, the firm should produce
A) 10,000 units. B) 12,000 units. C) 13,000 unit. D) somewhere between 10,000 and 12,000 units.
How can restricting entry into a union help boost members' wages without the union specifically setting wages?
What will be an ideal response?
In the long run
a. both supply and demand shocks have permanent effects on real GDP. b. real GDP can remain below potential. c. real GDP can remain above potential. d. both supply and demand shocks have no effect on real GDP. e. supply shocks have permanent effects on real GDP but demand shocks have no effect.