Comparative statics analysis in economics is best illustrated as
A) the comparison of equilibrium points before and after changes in the market have occurred.
B) a comparison of two types of markets.
C) the comparison of the percentage of change in the one variable divided by the percentage change in the other variable.
D) an analytical technique used to show best case scenarios of demand and supply curves.
A
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Changes in the growth rate of the velocity of money can't permanently shift the AD curve because:
A. in the long run, the inflation rate is determined by the money supply growth rate. B. in the long run, the inflation rate is determined by the growth rate of the velocity of money. C. in the long run, the inflation rate will be equal to the Solow inflation rate. D. changes in the growth rate of the velocity of money shift the SRAS curve, not the AD curve.
The value of any business is largely determined by the size of the dividend it pays its shareholders
Indicate whether the statement is true or false