If the overall price level decreases, then the aggregate demand curve will shift to the right
a. True
b. False
Indicate whether the statement is true or false
False
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How can we separate the cost of the electricity that generates the heat from a light bulb and the cost of the electricity that generates that same bulb's light?
A) By comparing the wattage of the bulb with the change in air temperature B) By distinguishing sunk costs from marginal costs C) By dividing the total cost in two D) We cannot do it in any defensible way.
Even if entry is easy, oligopolists possess sufficient market power so that profits are assured in the long run
a. True b. False Indicate whether the statement is true or false
Neoclassical economists consider changes in aggregate demand a useful tool for reducing unemployment
a. True b. False Indicate whether the statement is true or false
In a shopping mall in a large city, the Rudolph the Reindeer store sells only merchandise for the Christmas holiday season. Most of the store's revenue and profit are attributable to the months of October, November, and December. However, the store is open throughout the year. If the owner of the store is rational, what criterion does he or she use in deciding to keep the store open year-round?