In the long-run, the price level in the economy will change the same direction as aggregate demand
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Refer to Table 7-6. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many belts will Estonia gain compared to the "without trade" numbers?
A) 0 B) 10 C) 40 D) 50
If the absolute price elasticity of demand for a product is less than 1, then
A. consumers are relatively insensitive to price changes. B. there is a positive relationship between price changes and the quality of the product. C. consumers are relatively sensitive to price changes. D. producers are relatively insensitive to price changes.
Which of the following increases the information available to prospective buyers?
A) The auto dealer that allows customers to test drive their cars B) The grocer that packages its meat in cellophane C) The college that organizes orientation sessions for potential students D) The baker that gives customers free samples E) All of the above.
Which of the following is not a power of the Federal Reserve System?
a. Setting the prime interest rate b. Issuing Federal Reserve notes c. Buying and selling U.S. government securities d. Extending loans to member banks e. Clearing checks