A decrease in aggregate demand will have no effect on the real equilibrium GDP of the economy and will lower its price level in the long run.
Answer the following statement true (T) or false (F)
True
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Since most colleges and universities charge the same tuition to every student regardless of what time students choose to take their classes,
A) the schools must develop some type of non-price rationing device. B) it follows that all classes will have a shortage of seats. C) it follows that all classes will have a surplus of seats. D) it follows that some classes will likely have a shortage of seats while other classes may have a surplus of seats. E) a and d
Disinflation is defined as a
a. zero rate of inflation. b. constant rate of inflation. c. reduction in the rate of inflation. d. negative rate of inflation.
A profit-maximizing firm will increase its use of capital and decrease its use of labour when the:
a) marginal product of capital is higher than the marginal product of labour. b) marginal product of capital, per dollar spent on capital, is less than the marginal product of labour, per dollar spent on labour. c) average product of capital is higher than the average product of labour. d) total product of capital is higher than the total product of labour. e) marginal product of capital, per dollar spent on capital, is greater than the marginal product of labour, per dollar spent on labour.
The quantity supplied of bagels is 100 at the unit price $1. Suppose the price elasticity of supply by the initial value method is 1.5, and you would like to induce sellers to increase the quantity of bagels supplied to 130. Then the new price for bagels must be:
A. $11. B. $10.20. C. $1.20. D. $1.10.