If there was no profit effect, but there was a misperception effect in the short run, then SRAS is ____ and LRAS is ____
a. upward sloping; upward sloping
b. upward sloping: vertical
c. vertical; upward sloping
d. vertical; vertical
b
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Marge's Beauty Salon sells shampoo and conditioner. Marge has two types of customers. Their willingness-to-pay for shampoo and conditioner are given in the table below
If Marge bundles the shampoo and conditioner, could she increase revenue? Shampoo Conditioner Type I 8 5 Type II 6 8
If the Fed buys government securities on the open market, the money supply will contract
Indicate whether the statement is true or false
According to new classical theory, if the public correctly anticipates a government policy to increase aggregate demand, then the
A) short-run Phillips curve will be upward sloping, but the long-run Phillips curve will be downward-sloping. B) long-run Phillips curve will be upward sloping, but the short-run Phillips curve will be downward-sloping. C) short-run Phillips curve will be upward sloping, but the long-run Phillips curve will be vertical. D) long run Phillips curve will be upward sloping, but the short-run Phillips curve will be vertical. E) short- and long-run Phillips curves will be vertical.
An increase from $5 to $7 in the price of movie tickets is a larger percentage increase in the opportunity cost of an evening's entertainment for
What will be an ideal response?