If the price of jelly increases 10 percent and the amount of peanut butter purchased decreases 20 percent, then the cross-price elasticity of these goods is:
A. 0.5.
B. 2.
C. 0.5.
D. 2.
D. 2.
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The slope of the saving function is the
A) APC. B) MPC. C) APS. D) MPS.
If the production technology in a Robinson Crusoe economy has increasing returns to scale, there is not competitive equilibrium.
Answer the following statement true (T) or false (F)
In Problem 5, in the long run, what is the market price and the quantity of paper produced? What is the number of firms in the market?
What will be an ideal response?
Friedman and Phelps concluded that
a. in the long run the Phillips curve is downward sloping, which is consistent with classical theory. b. in the long run the Philips curve is downward sloping, which is inconsistent with classical theory. c. in the long run the Phillips curve is vertical, which is consistent with classical theory. d. in the long run the Phillips curve is vertical, which is inconsistent with classical theory.