According to this Application, the prices which were tracked in the retail catalogs exemplified the macroeconomic concept of the short run, a period of time in which
A) prices change frequently because of changes in aggregate supply.
B) prices don't change very much, implying that the aggregate supply curve is relatively flat.
C) prices never change because the aggregate demand curve is vertical.
D) price changes are significant because the aggregate supply curve is vertical.
B
You might also like to view...
Suppose the government increases the annual cost of the liquor permit that a tavern needs to serve alcohol. What effect will this increased cost have on the tavern's production and pricing decisions?
a. None-the tavern will maintain its current prices. b. The tavern will raise its prices to cover the higher cost. c. The tavern will scale back its operations. d. The tavern will cut its prices to increase its sales.
A per unit subsidy increases both consumer and producer surplus, but results in a deadweight loss
Indicate whether the statement is true or false
Using Table 6.1, from the 1982-1984 base to 2004, prices increased 
A. by 90.3 dollars per week on monthly bills. B. 90.3%. C. 190.3%. D. 90.3 times.
Suppose Canada can produce either 300 tons of paper or 200 HDTVs, and India can produce either 200 tons of paper or 100 HDTVs. The terms of trade between the two countries will lie between
A. 1/2 and 2/3 of an HDTV per ton of paper. B. 1/2 and 1 HDTV per ton of paper. C. 1/3 and 2/3 of an HDTV per ton of paper. D. 1/3 and 1/2 of an HDTV per ton of paper.