Which of the following is correct?
a. The short-run, but not the long-run, aggregate supply curve is consistent with the idea that nominal variables do not affect real variables.
b. The long-run, but not the short-run, aggregate supply curve is consistent with the idea that nominal variables do not affect real variables.
c. The long-run and short-run supply curves are both consistent with the idea that nominal variables affect real variables.
d. Neither the long-run nor the short-run aggregate supply curve is consistent with the idea that nominal variables affect real variables.
b
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Why would it be a mistake to treat opportunity costs and explicit monetary costs as identical?
A. Because sometimes the market does not function well. B. Because opportunity costs are different for different goods. C. Because there are trade-offs involved in any decision. D. Because of existence of efficient markets.
Nominal monthly wages increase from $1,500 to $1,800 while the price of a car increases by 4%. The percentage change in real monthly wages (in terms of cars) is about
A. 14% B. 12% C. 10% D. 16%
A player's strategy is a game plan when decisions are interdependent
a. True b. False
A firm's demand curve for labor coincides with the marginal factor cost of labor curve
a. True b. False Indicate whether the statement is true or false