Economists assume simply that tastes are given and are relatively stable
Indicate whether the statement is true or false
true
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When do firms pay efficiency wages? What is the relationship between moral hazard and efficiency wages?
What will be an ideal response?
A permanent negative supply shock leads to ________ output ________
A) higher; in both the short and long runs B) higher; in the short run but not in the long run C) lower; in both the short and long runs D) lower; in the short run but not in the long run
The relationship between government spending and the price level explains the:
A. upward-sloping aggregate demand curve. B. downward-sloping aggregate demand curve. C. perfect elasticity of the aggregate demand curve. D. None of these is true.
The demand curve facing a monopolist is
A. perfectly elastic. B. identical the demand curve for a perfectly competitive firm. C. perfectly inelastic. D. downward sloping.