The above figure shows the U.S. market for flip-flops. With no international trade, the price in the United States for flip-flops is ________. With international trade, the price in the United States for flip-flops is ________
A) $500; $300 B) $14; $12 C) $500; $700 D) $12; $14 E) $700; $300
B
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Discuss the different effects on the domestic interest rates when prices are assumed flexible and when they are assumed to be sticky
What will be an ideal response?
While purchasing _____ an individual whose cost of time is low will visit a larger number of dealers compared to the individual whose cost of time is high
a. a rare piece of jewelry b. a refrigerator c. a pair of jogging shoes d. a cabinet for keeping books
If everyone has a dominant strategy, there can be no mixed strategy equilibrium.
Answer the following statement true (T) or false (F)
If aggregate demand decreases and neither short-run nor long-run aggregate supply changes, then
A) the price level increases in the short-run and decreases in the long run. B) there is an inflationary gap. C) there is a recessionary gap. D) in the long run, the long-run aggregate supply will decrease.