Output supply is more responsive to price in the short run than in the long run. ?
Answer the following statement true (T) or false (F)
False
Rationale: Output supply is more responsive to price in the long run than in the short run, since the producer will hire more, causing an increase in output in the long run, beyond that of the short run.
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A decrease in the money wage rate
A) increases the long-run aggregate supply. B) decreases the long-run aggregate supply. C) increases the short-run aggregate supply. D) decreases the short-run aggregate supply.
Other things remaining the same, an individual demand schedule shows the various quantities of a good:
a. that a person wants and is able to purchase at alternative prices. b. that are demanded with a change in the quantity demanded of a substitute good. c. that a person is able to purchase at alternative income levels. d. that are demanded at various levels of utility. e. that are demanded by the market at various prices.
When positive spending shocks occur, transfer payments automatically fall
a. True b. False
Usury laws are a form of price ____________ and the minimum wage law is a form of price ___________________.
A. floor; floor B. ceiling; ceiling C. ceiling; floor D. floor; ceiling