Sticky wages and prices may cause quick shifts in aggregate demand and the macroeconomy.
Select whether the statement is true or false.
A. True
B. False
B. False
This statement is false. Sticky wages and prices may cause slow shifts in aggregate demand and the macroeconomy.
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If politicians decide to proceed with protection, why might economists prefer tariffs to quotas? Explain at least three reasons
What will be an ideal response?
A straight line production possibilities curve implies increasing opportunity costs
a. True b. False Indicate whether the statement is true or false
When the price level rises less than expected, a firm with a sticky price will sell its output at a price that is
a) more than the firm desires and increase its production. b) more than the firm desires and decrease its production. c) less than the firm desires and increase its production. d) less than the firm desires and decrease its production.
Suppose a perfectly competitive firm can increase its profits by increasing its output. Then it must be true that the firm's:
a. marginal cost exceeds its marginal revenue. b. price exceeds its average variable cost but is less than average total cost. c. marginal revenue exceeds its marginal cost. d. price exceeds its marginal revenue.