In the fooling model's AD/SAS/LAS diagram, short-run equilibria to the left of the LAS curve require the price level to be
A) above what workers expect.
B) above what firms expect.
C) below what workers expect.
D) below what firms expect.
C
Economics
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If the elasticity for computers at the current price is at 6.4, what would happen to total revenues if a computer manufacturer doubled its price?
(A) They would go up slightly. (B) They would double. (C) They would remain the same. (D) They would go down drastically.
Economics
The market for used cars is shown in the above figure. Neither buyers nor sellers can tell whether any given car is a lemon. Ten percent (10%) of all cars are lemons. Which of the following statements is TRUE?
A) All of the cars will be sold at $1,900. B) No cars will be sold. C) Only lemons will be sold at $1,600. D) Only lemons will be sold at $1,000.
Economics