In the macroeconomy, demand-side shifts change:
A. only the price level in the long run, while output eventually returns to its long-run potential level.
B. only the output level in the long run, while prices eventually return to their long-run potential levels.
C. aggregate demand only, which eventually shifts back in the long run.
D. aggregate demand only, which is why the price level remains unaffected in the long run.
A. only the price level in the long run, while output eventually returns to its long-run potential level.
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The table above shows Tom's total utility from milkshakes and sodas. Tom's total budget for milkshakes and sodas is $10.00 per week. Milkshakes cost $2.00 each and sodas cost $1.00 each
What quantity of milkshakes does Tom purchase at his consumer equilibrium? A) one B) two C) three D) four
In a contingent contract
A) the risk neutral party bears the risk. B) monitoring is not possible. C) the principal will be at a disadvantage. D) the payoffs are dependent upon another variable, such as revenue or profit.