Unemployment and recessions are sometimes necessary to curb high inflation.
Answer the following statement true (T) or false (F)
True
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If the cross elasticity of demand between Jeep Cherokees and Chevy Lumina Vans is 1.55, then the two vehicles are not substitutes in the eyes of car buyers
Indicate whether the statement is true or false
Opponents of inflation targets say that: a. such targets encourage workers to expect a low and stable inflation rate and hold down demands for wage increases. b. the Fed pays less attention to jobs and economic growth when it sets such targets
c. such targets encourage firms to plan on a low and stable inflation rate and hold down price increases. d. such targets encourage investors to plan on a low and stable inflation rate and hold down demands for interest rate increases. e. the Fed pays more attention to jobs and economic growth when it sets such targets.
The motivating force behind an increase in supply in a long-run adjustment to equilibrium is
a. lower prices. b. economic profits that are present in the short run. c. higher profit expectations among owners of firms in the industry, triggered by increased prices. d. normal profits witnessed by individuals outside the industry that trigger entry. e. the decreases in average cost that can be obtained through economies of scale.
?Wind ChimesSun DialsDeena912Artie68 Table 3.4Consider two individuals, Artie and Deena, who produce wind chimes and sun dials. Artie's and Deena's weekly productivity are shown in Table 3.4. Which of the following is true?
A. Artie has a comparative advantage in producing wind chimes but not sun dials. B. Artie has a comparative advantage in producing sun dials but not wind chimes. C. Artie has a comparative advantage in producing both goods. D. Artie does not have a comparative advantage in producing either good.