The difference between nominal and real values is that real values take into account
A. the presence of durable goods.
B. changes in prices between years.
C. depreciation.
D. changes in the composition of output.
Answer: B
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If certification decreases supply and serves as a barrier to entry, it ________ the price and ________ market power of the suppliers already in the market.
A) decreases; decreases B) decreases; increases C) increases; increases D) increases; decreases
A change in the distribution of income that leaves total income constant will not shift the market demand curve for a product providing:
a. everyone has an income elasticity of demand of zero for the product. b. everyone has the same income elasticity of demand for the product. c. individuals have differing income elasticities for the product, but the average income elasticity for income gainers is equal to the average income elasticity for income losers. d. any of the above conditions occur.
According to the "misperception effect" explanation of short-run aggregate supply, firms increase output as the price level rises because they mistake the increase in overall prices for an increase in the relative price of their own output
a. True b. False Indicate whether the statement is true or false
An increase in the world price of oil will result in...
What will be an ideal response?