Which of the following statements is correct?
A) An increase in the money wage rate shifts the aggregate demand curve leftward.
B) An increase in the price level shifts the aggregate demand curve leftward.
C) An increase in the price level shifts the aggregate demand curve rightward.
D) An increase in the quantity of the money shifts the aggregate demand curve rightward.
E) An increase in the real interest rate shifts the aggregate demand curve rightward.
D
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The external shock that hit Mexico and other Latin American countries in the early 1980s that caused the Lost Decade was a collapse in world oil prices
Indicate whether the statement is true or false
Let the production function be q = ALaKb. The function exhibits decreasing returns to scale if
A) a + b = 1. B) a + b > 1. C) a + b < 1. D) Cannot be determined with the information given.
It is more likely for tacit collusion to occur in the ________ market compared to the ________ market.
A) commercial airline; fast food B) dog food; cellular telephone provider C) fast food; commercial airline D) dog food; commercial airline
Which of the following statements regarding a competitive market is not correct?
a. There are many buyers and many sellers in the market. b. Firms can freely enter or exit the market. c. Price equals average revenue. d. Price exceeds marginal revenue.