An increase in future price expectations may act like a cost shock, shifting the aggregate supply curve to the left.
Answer the following statement true (T) or false (F)
True
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Everything else equal, an appreciation of the dollar against the yuan:
A) will lead to a decrease in the quantity of dollars demanded. B) will lead to an increase in the quantity of dollars demanded. C) will not affect the quantity of dollars demanded. D) can either lead to an increase or a decrease in the quantity of dollars demanded depending on the magnitude of the appreciation.
International trade leads to complete equalization of factor prices. Discuss
What will be an ideal response?
If your bank receives a demand deposit of $4,000 and the legal reserve requirement is 20 percent, then it can make additional loans of
a. $800 b. $3,200 c. $4,000 d. $16,000 e. $20,000
If the cross-price elasticity of two goods is negative, then the two goods are
a. necessities. b. complements. c. normal goods. d. inferior goods.