In the circular flow model, firms sell the services of factors of production to households.
Answer the following statement true (T) or false (F)
False
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Use the following diagram to answer the next question.
Based on this diagram, we can say ________.
A. monetary policy is likely to be more effective at fighting a recession than fiscal policy B. investment demand is very sensitive to changes in the interest rate C. an increase in the money supply will have little effect on investment or aggregate demand D. expansionary monetary policy will be more effective at increasing aggregate supply than aggregate demand
Pollution from the U.S. Middle West may not only harm New England and Canada, it may extend to cause harm to the entire solar system
Indicate whether the statement is true or false
When a union is present in a labor market, wages are not determined by the equilibrium of supply and demand
a. True b. False Indicate whether the statement is true or false
A monopolist maximizes profits by
a. producing an output level where marginal revenue equals marginal cost. b. charging a price that is greater than marginal revenue. c. earning a profit of (P - MC) x Q. d. Both a and b are correct.