If inputs into production cannot be substituted for each other but have to be employed in fixed proportions isoquants are straight, downward-sloping lines
Indicate whether the statement is true or false
False. Isoquants are straight lines when inputs are perfect substitutes. When input relations are fixed they are right angles.
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In the new Keynesian model, if an aggregate demand increase is unanticipated, then ________
A) aggregate demand will not change B) short-run aggregate supply will shift up immediately C) short-run aggregate supply will shift down immediately D) there is no immediate effect on the short-run supply curve
An economic policy is:
A. a generalization about the workings of an abstract economy. B. a physical or mental structure that significantly influences economic decisions. C. a standard people use when they determine whether a particular activity or behavior is acceptable. D. an action taken by the government to influence the course of economic events.