An insurance company that writes automobile policies tries to separate safe drivers from risky drivers by offering policies that feature different deductibles and different premiums. This practice is best described as an example of
a. screening.
b. behavioral economics.
c. monitoring.
d. signaling.
a
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The stickiness of wages and prices will cause
A) changes in aggregate demand to have short-run effects on real GDP. B) changes in aggregate demand to have no short-run effects on real GDP. C) changes in aggregate demand to have long-run effects on real GDP. D) changes in aggregate demand to have both short-run and long-run effects on real GDP.
A credible policy designed to lower inflation is likely to push the economy into recession
a. True b. False Indicate whether the statement is true or false
Explain the difference between a "change in quantity supplied" and a "change in supply."
What will be an ideal response?
Oliver just brought home a new kitten. We could expect Oliver's demand for:
A. dog toys, a substitute good, to decrease. B. cat toys, a complementary good, to decrease. C. cat toys, a complementary good, to increase. D. dog toys, a substitute good, to increase.