Answer the following statements true (T) or false (F)
1) Demand shocks may be positive or negative.
2) "Supply shocks" occur any time there is a change in the supply of goods and services.
3) Economists believe that most short-run fluctuations in output are the result of supply shocks.
4) Demand shocks cause problems in the macroeconomy primarily because prices are sticky.
1) T
2) F
3) F
4) T
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What are the information costs associated with forward contracts?
What will be an ideal response?
Suppose the total cost of producing T-shirts can be represented as TC = 50 + 2q. The average cost of the 5th T-shirt is
A) 2. B) 12. C) 52. D) 60.
A union can influence the demand for labor by:
a. requiring union fees. b. raising union fees. c. effective advertising that convinces customers to buy the "union label." d. all of these.
Some people like blue jeans that fit tightly, and some prefer blue jeans with some give. These preferences for small differences in the same kind of product create opportunities for _______________ among the companies that produce them.
a. monopolies b. monopolistic competition c. perfect competition d. price fixing