Refer to Figure 9.1. Assume the economy is initially at point A
Following the initial change in short-run equilibrium resulting from a recession caused by an increase in oil prices, the end of the recession is best represented by which long-run equilibrium combination of price level and real GDP? A) P1; Y1
B) P3; Y3
C) P1; Y3
D) P3; Y1
A
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According to Robert E. Hall and Charles Jones, successful economic performance requires
A) a favorable infrastructure of rules and institutions. B) minimizing corruption and criminality. C) the use of one of the eight major international languages. D) A and B. E) all of the above.
If marginal cost is rising, then average cost must be rising
a. True b. False Indicate whether the statement is true or false
Based on the information in this graph showing the deadweight loss for rent controls in the short run, what would happen to the supply of rental units in ten days if a rent control were enacted today?
a. It would increase dramatically.
b. It would remain about the same.
c. It would decrease dramatically.
d. It would increase moderately.
Refer to the above graph. The profit-maximizing monopolist shown sets its price at:
A. 0H. B. 0K. C. 0G. D. 0J.