If the public expects the incumbent administration to stimulate the economy shortly before an election:
a. the unemployment rate will fall at the cost of higher inflation.
b. the economy will move up the short-run Phillips curve.
c. lower inflation will prevail, and the rate of unemployment will remain unchanged.
d. the economy will immediately move up the long-run Phillips curve.
e. neither inflation nor the unemployment rate will change.
d
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The annual rate of growth of commodity output during the Civil War:
a. held constant from the previous decade. b. increased by roughly 25 percent. c. fell by more than 50 percent. d. None of the above is correct.
If consumer tastes are changing more in favor of the consumption of a particular good the:
a. market demand curve will shift to the left. b. consumer will move up a given demand curve, decreasing the quantity demanded. c. consumer would move down a given demand curve, decreasing the quantity demanded. d. consumer would move down a given demand curve, increasing the quantity demanded. e. market demand curve would shift to the right.
What are the two approaches followed by the U.S. government to ease the burden on the victims of free trade?
Exhibit 9-2 A monopolistic competitive firm
?
Comparing the firms in a monopolistic competitive industry shown in Exhibit 9-2 to a perfectly competitive firm in long-run equilibrium, we find that both firms
A. choose a price equal to the marginal cost at the profit-maximizing quantity. B. will experience entry of new firms into the industry. C. earn zero economic profits. D. minimize cost per unit at their profit-maximizing quantity.