Everything else held constant, an increase in financial frictions ________ aggregate ________
A) increases; demand
B) decreases; demand
C) decreases; supply
D) increases; supply
B
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Total cost divided by the number of units produced is called:
a. total cost b. average cost c. marginal cost d. variable cost
Whether the minimum wage is a binding price floor always depends upon whether the economy is in a recession
a. True b. False Indicate whether the statement is true or false
In the quantity theory of money:
A. the price level is a function of the supply of money. B. the supply of money is a function of the price level. C. the money supply and the price level are inversely related. D. the money supply is controlled by the government.
Price decreases cause no change in a household's choice set.
Answer the following statement true (T) or false (F)