Test Review 2 Answers - Professor Joyce Jacobsen Economics...

This preview shows page 1 - 2 out of 2 pages.

Professor Joyce Jacobsen Economics 110-01 Fall Semester 2010-11 November 5, 2010 Answers to Review Problems for Test #2 I do not show my work. You would need to show your work to get full credit on the exam. A. (1) False. They hire fewer workers. (2) True. Competition drives profit to zero even though firms price above marginal cost. (3) False. This causes a movement upward along the aggregate demand curve. (4) False. The aggregate supply curve must be vertical for this to happen. Instead, only output, not the price level, will change when aggregate supply is horizontal. B. (1)106.2 (2) some ideas: changes in G, changes in T, changes in baseline consumption C
Image of page 1

Subscribe to view the full document.

Image of page 2

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern