The Keynesian short-run aggregate supply curve is horizontal because
A) it represents Say's law.
B) it reflects wage and price inflexibility.
C) it represents the full employment level of real GDP.
D) it reflects the absence of money illusion.
B
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The difference between the investment demand curve and the investment schedule is that the former shows a(n)
A. direct relationship between investment and interest rate, while the latter shows no correlation between investment and income. B. inverse relationship between investment and income, while the latter shows no correlation between investment and interest rate. C. direct relationship between investment and income, while the latter shows no correlation between investment and interest rate. D. inverse relationship between investment and interest rate, while the latter shows no correlation between investment and income.
What is meant by comparative statics? Assume that a firm wants to set up a factory. It considers four different locations
The rent of the factory space and the time taken to transport the products from each of the locations to the market is shown in the table below. It is also given that the opportunity cost of time is $10 per hour. a) Which is the optimum location? b) If the opportunity cost of time changes to $30 per hour, is there any change in the optimum? Location Time Taken to Transport Products to the Market (hours per month) Rent ($ per month) 1 180 3,000 2 150 3,200 3 100 3,600 4 60 4,100
Unemployment rises and falls in the same direction as output over the business cycle
a. True b. False Indicate whether the statement is true or false
Corrective taxes cause deadweight losses, reducing economic efficiency
a. True b. False Indicate whether the statement is true or false