A horizontal demand curve is perfectly elastic because a change in price will induce an infinite change in quantity demanded
a. True
b. False
Indicate whether the statement is true or false
True
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The long-run aggregate supply curve of an economy corresponds to
A) a point inside the production possibilities curve. B) a point outside the production possibilities curve. C) a point on the production possibilities curve. D) none of the above: there is no relationship between the long-run aggregate supply curve and the production possibilities curve.
Mental or physical labor or help purchased by consumers is a(n)
A. durable consumer good. B. nondurable consumer good. C. service. D. investment.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The best point for society would be
A. either Point B or Point C, as the total amount being produced at either of these points is approximately the same. B. at any of the labeled points, as all of the points represent an efficient allocation of resources. C. Point C, as at this point there are approximately equal amounts of LCD and OLED televisions being produced. D. indeterminate from this information, as we don't have any information about the society's desires.
Recent research by Keynesians and classicals has led to
A. convincing evidence that TFP shocks are the dominant force affecting the business cycle. B. the recognition by classical economists that prices adjust very slowly. C. the refutation of the efficiency wage model. D. a reconciliation of the types of models they use.