The term cross-price refers to the idea that:
a. the price of one good is affecting the quantity demanded of a different good.
b. the demand of one good is affecting the quantity demanded of a different good.
c. the price of one good is affecting the quantity supplied of a different good.
d. the supply of one good is affecting the quantity demanded of a different good.
a. the price of one good is affecting the quantity demanded of a different good.
The term cross-price refers to the idea that the price of one good is affecting the quantity demanded of a different good.
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The least liquid form of money is _________
Fill in the blank(s) with the appropriate word(s).
A decline in the expected inflation rate causes the demand for money to ________ and the demand curve to shift to the ________, everything else held constant
A) decrease; right B) decrease; left C) increase; right D) increase; left
If the aggregate demand curve shifts to the left in the short run then the long-run equilibrium will be at a:
A. higher price level and higher level of output. B. higher price level and lower level of output. C. lower price level and same level of output. D. lower price level and lower level of output.
Poor countries often have difficulty investing in capital because
a. development assistance is designed in increase consumer goods. b. multinational corporations do not bring technological advances into poor countries. c. the population is living at subsistence level and cannot afford to save. d. they suffer from the cost disease of personal services.