The change in the quantity of aggregate output demanded depends on how much the aggregate expenditure line shifts, not on which spending component causes the shift
Indicate whether the statement is true or false
true
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For complements, cross price elasticity of demand is:
a. Negative b. Positive c. between zero and one only d. zero.
Risk aversion is best explained by:
a. timidness. b. increasing marginal utility of wealth. c. constant marginal utility of wealth. d. decreasing marginal utility of wealth.
Refer to the graph below. The solid kinked demand curve would most likely be observed by a firm operating within
a. perfect competition.
b. pure monopoly.
c. an oligopoly.
d. monopolistic competition.
Excess supply is:
A. the result of a price that is above equilibrium, causing the quantity demanded to exceed the quantity supplied. B. the result of a price that is below equilibrium, causing the quantity demanded to exceed the quantity supplied. C. the result of a price that is above equilibrium, causing the quantity supplied to exceed the quantity demanded. D. the result of a price that is below equilibrium, causing the quantity supplied to exceed the quantity demanded.