Because prices change too slowly in the short-run and as a result, they do not quickly equalize the quantity demanded and quantity supplied of goods and services, the short-run response of the economy to a demand shock is through:
A) changes in employment but not in output.
B) changes in prices rather than through changes in employment.
C) changes in output but not in the employment.
D) changes in output and employment levels rather than through changes in prices.
D) changes in output and employment levels rather than through changes in prices.
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The introduction of steamboats:
a. led to dramatic declines in the price of upstream transport. b. led to moderate declines in the price of downstream transport. c. is the primary reason for falling transportation costs in the early 1800s. d. led to an initial decrease in transport costs that continued to fall due to learning by doing and the construction of lighter boats with increased capacity. e. All of the above.
Which of the following people is most likely to demand U.S. dollars in the foreign exchange market?
a. A United States resident who is traveling to the Greek Islands b. An American investor who intends to buy Japanese government bonds c. A resident of Australia who is traveling to Belgium d. A British importer of U.S. beef e. A U.S. company that is importing avocados from Mexico
If pollution is reduced below the socially efficient level:
a. the marginal cost of pollution abatement exceeds the marginal benefit of pollution abatement b. the marginal cost of pollution abatement is less than the marginal benefit of pollution abatement. c. the marginal cost of pollution abatement equals the marginal benefit of pollution abatement. d. nothing can be said about the relationship between the marginal cost and marginal benefit of pollution abatement.
Angelo is a wholesale meatball distributor. He sells his meatballs to all the finest Italian restaurants in town. Nobody can make meatballs like Angelo. As a result, his is the only business in town that sells meatballs to restaurants. Assuming that Angelo is maximizing his profit, which of the following statements is true?
a. Meatball prices will be less than marginal cost. b. Meatball prices will equal marginal cost. c. Meatball prices will exceed marginal cost. d. Meatball prices will be a function of supply and demand and will therefore oscillate around marginal costs.