If firms in a monopolistically competitive market are earning negative economic profits, the demand curve of a single firm will likely:
A. shift right, as other firms enter the industry.
B. shift left, as other firms enter the industry.
C. shift left, as other firms leave the industry.
D. shift right, as other firms leave the industry.
Answer: D
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In the FOMC's "Statement on Long-Run Goals and Monetary Policy Strategy,"the FOMC agreed to a single numerical value of the inflation objective, 2% on the ________
A) PCE deflator B) GDP deflator C) CPI D) PPI
Scarcity:
a. exists because resources are unlimited while human wants are limited. b. means we are unable to have as much as we would like to have. c. will likely be eliminated as technology continues to expand. d. is not an issue addressed in economics.
If the government wishes to increase GDP by $1,000b, and the MPC is 0.6, it should increase its spending by:
A. $250b. B. $400b. C. $600b. D. $1,000b.
Other things remaining the same, if a nation's expected return on assets and inventories rises, the demand to hold money:
a. Falls. b. Rises. c. Does not change.