The EITC provides substantial work incentive for low-income workers and has only positive supply effects
Indicate whether the statement is true or false
F
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Explain how the prisoners' dilemma can be used to examine pricing strategies in an oligopoly
What will be an ideal response?
If aggregate demand shifts from AD4 to AD5,
A. output will rise and the price level will fall.
B. output will fall and the price level will rise.
C. neither output nor the price level will change.
D. the price level will rise and output will remain unchanged.
If a firm shuts down in the short run
A) its loss equals zero. B) its loss equals its fixed cost. C) is makes zero economic profit. D) its total revenue is not large enough to cover its fixed cost.
Who would probably argue that you need to study the forest before you can understand the trees?
A. A macroeconomist B. A microeconomist C. A classical economist D. A normative economist