According to the concept of framing effects:
A. advertising power is limited because of the inability of firms to change consumers'
perspectives.
B. all people will assign the same utility to a given situation, regardless of their previous status
quo.
C. whether a new situation is viewed as a gain or a loss depends on one's starting position.
D. firms should never raise prices or reduce wages.
Answer: C
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At short-run equilibrium inflation ________ and output equals ________.
A. equals the value determined by part expectations and pricing decisions; the level of short-run equilibrium output consistent with that inflation rate B. is stable; the level of output consistent with zero inflation C. equals the value consistent with potential output; the level of output consistent with zero inflation D. equals the value determined by past expectations and pricing decisions; potential
If the substitution effect of wage increases is greater than the income effect, then the individual labor supply curve is positively sloped in the short run.
Answer the following statement true (T) or false (F)