Isoquants that are downward-sloping straight lines imply that the inputs

A) are perfect substitutes.
B) are imperfect substitutes.
C) cannot be used together.
D) must be used together in a certain proportion.

A

Economics

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When there is a liquidity trap, when the Fed adds bank reserves, there is a large effect on borrowing, investment and aggregate demand

a. True b. False Indicate whether the statement is true or false

Economics

Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:

A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.

Economics