Using AD & LRAS explains the business cycle.
a. true
b. false
Ans: b. false
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The short-run aggregate supply curve shows that a change in inflation will cause (a) change(s) in ________
A) output B) potential output C) expected inflation D) price shocks E) all of the above
Suppose a cup of coffee at the campus coffee shop is $2.50 and a cup of hot tea is $1.25 and that a student's beverage budget is $20 per week. What is the market tradeoff between coffee and tea?
a. 1 coffee to 1 tea b. 2 coffee to 1 tea c. 1 coffee to 2 tea d. 2 coffee to 2 tea
If a German firm buys goods from a U.S. firm with dollars it obtains by exchanging euros for dollars, both U.S. net exports and U.S. net capital outflow increase
a. True b. False Indicate whether the statement is true or false
Suppose that Ed's Fine Bottled Water supplies 35,000 quarts of bottled water each month when the price per quart is $0.80 . When the price of a quart increases to $1.20, supply is increased to 45,000 quarts each month. Calculate the absolute value of Ed's price elasticity of supply of water?
a. 0 b. 0.63 c. 1 d. 1.6