If Herbert, the hair stylist, raises the price of his cuts from $13 to $15 and finds the number of cuts falls from 300 to 260, then the demand for Herbert's cuts in this range is:

If the economy is in short run equilibrium then

A) real GDP equals potential GDP. B) nominal GDP equals potential GDP. C) real GDP cannot be equal to potential GDP. D) real GDP can be greater than, less than, or equal to potential GDP.

A heterodox model would not call for freezing wages and prices, but an orthodox one would

Indicate whether the statement is true or false