Refer to the graph above. Assume that the economy is in a recession with a price level of P 1 and output level Q 1. The government then adopts an appropriate discretionary fiscal policy. What will be the most likely new equilibrium price level and output?
P1 and Q1
P1 and Q3
P2 and Q2
P2 and Q4
P2 and Q2
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Discuss the role of product differentiation and advertising in monopolistic competition
What will be an ideal response?
If a firm buys a delivery van for $18,000 and can resell it in 2 years for $7,500, the opportunity cost of using the van is
A) $10,500. B) $7,500. C) $18,000. D) $3,750.
The circular flow diagram divides the economy into:
a. Winners and losers. b. Real sector and nominal sector. c. Domestic sector and foreign sector. d. Agricultural sector and non-agricultural sector. e. Producer sector and consumer sector.
Which would be considered an investment according to economists?
A. The purchase of stock in MacDonald's. B. The selling of IBM corporate bonds. C. The purchase of a new machine by Ford. D. The buying of shares of Janus mutual funds.