If the two goods in an Edgeworth Box are perfect complements for one person and perfect substitutes for the other, then all efficient allocations are such that the first person has the same amount of good 1 as of good 2.

Answer the following statement true (T) or false (F)


True

Rationale:

Economics

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"A drop in the money supply lowered output in the short run, but left output unaffected in the long run." This statement implies that the price level __________ in the long run, causing the interest rate to __________

A) rose; rise B) rose; fall C) fell; rise D) fell; fall

Economics

Explain the multiple expansion process and detail a multiple expansion scenario that features at least three deposits. Be sure to provide exact numbers for each step and note the total amount of new money created from the initial deposit.

What will be an ideal response?

Economics

What determines the equilibrium wage and quantity for labor in competitive markets?

a. the intersection of the market supply of labor and the market demand for labor b. the influence of union-negotiated wages and limits on working hours c. the intersection of minimum wage and the market demand for labor d. the balance of substitution effect and the income effect

Economics

If depreciation is smaller than gross investment,

A. Net investment exceeds depreciation. B. The nation's capital stock is getting smaller. C. Gross investment is negative. D. Net investment is positive.

Economics