In the long run, a decrease in aggregate demand will lead to a(n) _____
Fill in the blank(s) with the appropriate word(s).
decrease in the price level and no change in the output level.
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Does the presence in the real world of intraindustry trade prove or disprove the classical or Heckscher-Ohlin models? Explain
What will be an ideal response?
If a monopolistically competitive firm's demand curve is shifting left, it will stop shifting when:
A. the price is equal to the firm's marginal cost. B. the price is equal to the firm's average total cost. C. the price is the same as what a perfectly competitive firm's price would be. D. there is no deadweight loss.
Capital gains are profits that you earn on the sale of your
A. labor. B. money. C. financial asset. D. economics textbook.
Capital flight refers to the fact that both human and financial capital
A. flow into developing countries to build much needed infrastructure. B. leave developing countries in search of a higher rate of return. C. flow into developing countries to invest in risk free investments. D. leave developed countries in search of a higher rate of return.