The concept of "random walk" applies most closely to predictions of
a. consumer demand for a product after a price increase.
b. the effects of a tax on the supply of oil.
c. the effects of transfer payments on labor supply.
d. the price of a particular stock one year from now.
d
Economics
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If the long-run supply curve is horizontal, we know that this is
A) a decreasing-cost industry. B) a constant-cost industry. C) an increasing-cost industry. D) a situation in which some input prices change as firms enter and exit the industry.
Economics
Assume that autonomous expenditures in an economy decreased by $10 billion. What is the change in aggregate demand at a given price level if the MPC is 0.5?
a. increase by $50 billion b. increase by $10 billion c. decrease by $20 billion d. decrease by $10 billion
Economics