If the price of inputs rises and foreign income rises:
a. Aggregate demand and aggregate supply rise.
b. Aggregate demand and aggregate supply fall.
c. Neither aggregate demand nor aggregate supply change.
d. Aggregate demand rises, and aggregate supply falls.
e. None of the above.
.D
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Like the monopolist, the monopolistically competitive firm:
A. faces a downward sloping demand curve. B. is a price taker. C. sets the price where marginal cost equals marginal revenue; the demand curve doesn't matter. D. All of these statements are true.
Keynes believed that
A) Say's law would hold in a laissez-faire economy. B) the economy would always be near or on its production possibilities frontier. C) wages and prices are often inflexible in the downward direction. D) the equilibrium level of output will always be at the full-employment level of output.
An increase in the supply of bonds leads to an increase in aggregate demand.
a. true b. false
A reduction in money wages shifts...
What will be an ideal response?