An increase in the price of raw materials will shift both the MC and the ATC curves upward
a. True
b. False
Indicate whether the statement is true or false
True
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The demand for money curve is drawn
A) holding several things constant, including the price level and interest rates. B) with interest rates on the vertical axis and the curve sloping down since lower interest rates mean the "price" of holding money has fallen. C) holding several things constant, including GDP and interest rates. D) with interest rates on the horizontal axis, and the curve sloping up since the "price" of holding money varies directly with the interest rate.
The monetary growth rule is a plan for increasing the quantity of money
A) at a rate which increases as the economy grows. B) at a rate which decreases as the economy declines. C) at a rate which increases during recessions and decreases during expansions. D) at a fixed rate that does not respond to changes in the economic condition.
How would each of the following changes affect the steady-state values of the capital—labor ratio, output per worker, and consumption per worker? (a) A change in the composition of the capital stock raises the depreciation rate
(b) A change in social mores lowers the population growth rate. (c) Government tax policies change to encourage a higher saving rate. (d) A supply shock reduces productivity sharply.
In the presence of market failure, government involvement will lead to efficient outcomes.
Answer the following statement true (T) or false (F)