An increase in the money supply shifts the aggregate-supply curve to the right
a. True
b. False
Indicate whether the statement is true or false
False
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During October and November 2008, gasoline prices were falling dramatically, making travel by car less expensive but air travel prices were as high as ever. What is TRUE about consumer preferences, possibilities, or choices?
A) The relative price of air travel in terms of travelling by car decreases. B) If travelling by car is a normal good, both the substitution and income effects would lead to a decrease in travelling by car. C) The consumers' budget line would shift outward and its slope would not change. D) If air travel is a normal good, both the substitution and income effects would lead to an increase in air travel.
If a firm’s marginal physical product is 5, and it sells its product for $60, and a unit of labor costs $200, the firm should
A. increase the use of labor. B. decrease the use of labor. C. decrease the price of the product. D. reduce output of the product.
In early 2010 Molly paid $200,000 for a house built in 2000 . She spent $30,000 on new materials to remodel the house. Although Molly lived in the house after she remodeled it, its rental value rose. Which of the following contributed to real GDP in 2010?
a. the price of the house, the cost of remodeling materials, the increase in rental value b. the price of the house and the cost of remodeling materials, but not the increase in rental value c. the costs of the remodeling materials and the increase in rent, but not the price of the house d. None of the above are correct.
An important result in long-run equilibrium in monopolistic competition is that the equilibrium point results in
A. price = MR. B. price = ATC. C. price is greater than ATC. D. ATC = MC.