If two goods are close substitutes:
a. Consumers will always buy the one that has the lower price
b. An increase in the price of one causes the demand for the other to decrease
c. A decrease in the price of one causes an increase in the demand for the other
d. A fall in the price of one will decrease the demand for the other
d. A fall in the price of one will decrease the demand for the other
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The belief by most economists that real and nominal variables are essentially determined separately in the long run is characteristic of the ________ model.
a) aggregate demand b) classical c) Keynesian d) aggregate supply
The difference between the economic and accounting costs of a firm are
A) the accountant's fees. B) the corporate taxes on profits . C) the opportunity costs of the factors of production that the firm owns. D) the sunk costs incurred by the firm. E) the explicit costs of the firm.