The key part of the real business cycle theory model is:
A. changes in potential output.
B. changes in aggregate demand.
C. the short-run aggregate supply curve.
D. the importance of monetary policy.
Answer: A
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A) risky asset. B) securitization premium. C) term structure. D) risk premium.
A monopolist sells a lesser quantity at a higher price compared to a perfect competitor
a. True b. False Indicate whether the statement is true or false
Suppose that Spain has a comparative advantage in hats and Portugal has a comparative advantage in doormats. Under a system of free trade, each country specializes and then trades with the other. If the price starts at four hats per doormat, and then increases to five hats per doormat, then:
A. people in Portugal will not want to buy as many hats. B. Spain no longer has a comparative advantage in hats. C. some of the gains from trade shift to Spain. D. some of the gains from trade shift to Portugal.
For what kinds of goods are buyers most likely to seek additional information about quality?
What will be an ideal response?