A fall in labor costs will cause aggregate:
A. Supply to increase
B. Demand to increase
C. Supply to decrease
D. Demand to decrease
A. Supply to increaseA. Supply to increaseA. Supply to increase
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Natalie can produce 6 shirts in a day, or cook three meals. Her opportunity cost of producing a shirt is 2 meals
Indicate whether the statement is true or false
Government spending is a leakage out of the circular flow of income and spending
a. True b. False Indicate whether the statement is true or false
Markets sometimes fail to allocate resources efficiently
a. True b. False Indicate whether the statement is true or false
Suppose the inverse market demand is given by P = 75 ? 0.5Q. If the incumbent continues to produce 20 units of output, which of the following equations best summarizes the potential entrant's residual demand curve?
A. P = 65 ? 0.5Q B. P = 20 ? 0.5Q C. P = 65 ? 2Q D. P = 150 ? 2Q