In the Keynesian model, a firm's high menu costs cause
A) real-wage rigidity.
B) full employment.
C) price stickiness.
D) efficiency wages.
C
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Suppose A and B are complementary goods. Other things being equal, the demand curve for A will shift to the right when the price of B goes up
a. True b. False Indicate whether the statement is true or false
Why might a system of marketable pollution permits lead to a higher concentration of polluted areas than would a command-and-control system?
What will be an ideal response?
Which of the following statements about a movement along the production possibilities curve in the above figure is FALSE?
A. There are no opportunity costs involved in choosing one point on the curve over all other points. B. Society cannot have more of both goods at the same time. C. An additional computer can be produced only if fewer televisions are produced. D. The trade-off between computers and televisions is not constant.
All of the following will cause the aggregate supply curve to shift to the right EXCEPT
A) discoveries of raw materials. B) a reduction in input prices. C) an increase in marginal tax rates. D) a reduction in international trade barriers.