Answer the following questions true (T) or false (F)
1. The long-run aggregate supply curve is vertical.
2. When potential GDP increases, long-run aggregate supply also increases.
3. A supply shock causes the long-run aggregate supply curve to shift left, decreasing the price level.
1. TRUE
2. TRUE
3. FALSE
Economics
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A monopoly firm can sell as much output as it wants at whatever price it sets
a. True b. False Indicate whether the statement is true or false
Economics
Suppose a consumer spends her income on two goods: music CDs and DVDs. The consumer has $200 to allocate to these two goods, the price of a CD is $10, and the price of a DVD is $20 . What is the maximum number of CDs the consumer can purchase?
a. 10 b. 20 c. 40 d. 50
Economics