The more product differentiation in the market, the ________ the firm specific demand curve. The less product differentiation in the market, the ________ the firm specific demand curve.
A. steeper; flatter
B. flatter; steeper
C. more concave; more convex
D. more convex; more concave
Answer: A
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The inflation rate measures the average prices of goods and services in the economy
Indicate whether the statement is true or false
Assume that a constant-cost, perfectly competitive market is initially in long-run equilibrium. After all long-run adjustments are made, which of the following would occur as a result of an increase in the price of a complement to this industry's product?
a. The market price would remain unchanged; the market quantity would rise. b. The market price would rise; the market quantity would fall. c. The market price would remain unchanged; the market quantity would fall. d. Both the market price and the market quantity would fall. e. Both the market price and the market quantity would rise.
Keynesian economists believe that
a. an increase in the money supply leads to a higher price level b. price changes adjust the value of the goods produced to the money supply c. velocity and output are constant in the short run d. an increase in production, if the money supply is held constant, will cause velocity to increase e. an increase in the money supply leads to a decrease in nominal GDP
The sacrifice ratio is the
a. sum of the inflation and unemployment rates. b. inflation rate divided by the unemployment rate. c. number of percentage points annual output falls for each percentage point reduction in inflation. d. number of percentage points unemployment rises for each percentage point reduction in inflation.