Which of the following is TRUE?
A) MPC - MPS = 1
B) MPC + MPS = 1
C) MPC * MPS = 1
D) MPC / MPS = 1
B
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In a competitive market with high cost and low cost consumers (where firms are unable to tell consumer types apart), any screening costs incurred by firms will be passed on to low cost consumer but not to high cost consumers.
Answer the following statement true (T) or false (F)
The law of one price states that
A) most countries require that all entering goods have the same price. B) most countries require that all exported goods have the same price. C) identical goods should have the same price anywhere in the world. D) most countries require that the price of a good not be changed once it is already in a store and available for sale.
The rate at which aggregate supply changes to restore equilibrium at potential output depends crucially on _____
Fill in the blank(s) with the appropriate word(s).
According to the theory of rational expectations, the government can influence output
A. with appropriate fiscal and monetary policy. B. in the short run, but not in the long run. C. without affecting the price level. D. only by making unexpected changes in aggregate demand.