A decrease in the price level is likely to decrease the aggregate amount of output supplied in the short run because
A. the aggregate supply curve is vertical in the short run.
B. interest rate is high in the short run.
C. wages are sticky in the short run.
D. wages change in the short run.
Answer: C
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Scalping at major sporting events is an example of
A) a surplus caused by the existence of price ceilings. B) the operation of rationing by the market. C) a black market caused by a price ceiling. D) a black market caused by a price floor.
A quota will typically
A. reduce the price paid by consumers. B. increase the price received by sellers. C. reduce the price received by sellers. D. have no effect on price.
A decrease in expected returns on investment will most likely shift the AD curve to the ________.
A. right because Ig will increase B. left because C will decrease C. left because Ig will decrease D. right because C will increase
What does the demand curve for money look like? Why?
What will be an ideal response?