Answer the following statement(s) true (T) or false (F)
1. The aggregate demand curve can shift to the right or left due to changes in price levels.
2. A decrease in a nation’s population will increase aggregate demand.
3. A fall in incomes abroad can reduce U.S. net exports and cause a leftward shift in the U.S. aggregate demand curve.
4. Input prices are said to be sticky in the long run.
5. The misperception effect involves a false perception about relative prices.
1. False
2. False
3. True
4. False
5. True
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Very Technical is a firm that sells computing equipment. It costs Very Technical $100 for each order of computer monitors and the variable cost of placing an order is $4 per monitor. Very Technical pays an annual holding cost of $10 per monitor. If Very Technical sells 6,000 computer monitors a year and they order 500 monitors, what is the total annual cost of the monitors?
A) $27,700 B) $21,500 C) $32,800 D) $35,700
A sudden increase in the market demand in a competitive industry leads to
a. A market equilibrium profits higher than the original equilibrium in the short-run b. A market equilibrium profits equal to the original equilibrium in the long-run c. Both a and b d. None of the above
A price discriminating monopolist charges a very high price to the consumers with high price elasticity of demand
a. True b. False Indicate whether the statement is true or false
A positive aspect of monopolies is that they may aid innovation in the marketplace.
Answer the following statement true (T) or false (F)