Open, competitive output markets ensure that households do not end up with the wrong goods and services.
Answer the following statement true (T) or false (F)
True
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According to rational expectations, if policy makers consistently stimulate aggregate demand when real output falls below the economy's potential output, then people will not be able to anticipate the effects of this policy on the price level, unemployment, and the real output level
Indicate whether the statement is true or false
The differing elasticities of the supply and demand curves for labor mean that the burden of the payroll tax is placed mostly on ______.
a. investors b. government c. firms d. workers
If the supply schedule for a product has an upward slope and the price of that product declines from $100 to $75, the:
a. Quantity supplied of the product will increase b. Quantity supplied of the product will decline c. Supply of the product will shift to the right d. Supply of the product will shift to the left
Which of the following would be a fixed input to an automobile firm?
A) steel B) a plant in California C) car batteries D) engineers