An increase in demand for French fries will cause equilibrium wage rates:
A. and quantities of potato workers hired to rise.
B. and quantities of potato workers hired to fall.
C. to rise and quantities of potato workers hired to fall.
D. to fall and quantities of potato workers hired to rise.
Answer: A
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The perfectly competitive firm's supply curve:
A) coincides with its perfectly elastic demand curve. B) is perfectly inelastic at the market price. C) is the firm's marginal cost curve above the minimum point on the AVC curve. D) is the firm's average total cost curve above the shutdown point.
Suppose that there is a negative aggregate demand shock and the central bank commits to an inflation rate target. If the commitment is credible, then
A) the public's expected inflation will remain unchanged. B) the short-run aggregate supply curve will rise. C) over time inflation will fall. D) all of the above. E) both A and C.
Which of the following varies along a given demand curve?
a. consumer preferences b. prices of substitutes c. prices of complements d. the price of the good itself e. income
Wage decreases lead to a decrease in aggregate quantity supplied
a. True b. False Indicate whether the statement is true or false