If the market demand curve in a perfectly competitive industry shifts right, the demand curve for each existing firm will:
a. shift up
b. shift down.
c. shift right.
d. shift left.
a
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There are ________ between the risks individuals expose one another to and the risks corporations expose their customers to
A) major differences B) no fundamental differences C) only financial differences D) significant, but relatively minor differences
The price of a bond with a maturity date one time period into the future is equal to its face value
a. multiplier by 1 - r. b. multiplied by 1 + r. c. divided by 1 + r. d. divided by 1 - r.
One measure of the inflation rate is the
A) sum of the CPIs of adjacent years. B) percentage change in the CPI of adjacent years. C) percentage change in the Real GDP of adjacent years. D) GDP minus the Real GDP in a year.
An inflationary gap exists when the macro economy is in equilibrium at more than the potential output of the economy because aggregate demand is so high that the economy is operating temporarily beyond its long-run capacity.In other words, the AD=AS occurs to the right of the vertical long-run supply curve.
Indicate whether the statement is true or false.