Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward
B. Short-run aggregate supply shifting downward
C. Aggregate demand shifting rightward
D. Aggregate demand shifting leftward
Answer: B
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Suppose you are accepted to all of the three business schools to which you applied. Consider all the factors that could matter when it comes to choosing a business school
a. How would you go about making an optimal decision about which school to attend? b. Suppose you have to give up a job that pays you $40,000 a year to attend business school. How would this affect your calculations of which business school to attend?
The balance-of-payments identity is an equation that shows that the value of:
A. net exports equals the net capital outflow. B. net capital inflow equals the net capital outflow. C. imports must equal exports. D. payments from a country exceeds payments to a country.
A country or region has a comparative advantage when it can produce a good or service ______.
a. at a lower opportunity cost than others b. at a faster pace than others c. using fewer resources than others d. that is of higher quality than others
In the long run, monopolistically competitive firms charge prices:
A. equal to the minimum of average total cost. B. equal to marginal cost. C. below marginal cost. D. above the minimum of average total cost.