If the general level of prices is lower than business decision makers anticipated when they entered into long-term contracts for raw materials and other resources, which of the following is most likely to occur?
a. An economic boom.
b. Highly attractive profit margins.
c. An actual rate of unemployment that is greater than the natural rate of unemployment
d. A sharp increase in imports.
C
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A decrease in aggregate demand causes a decrease in ________ only in the short run, but causes a decrease in ________ in both the short run and the long run
A) the price level; real GDP B) the price level; the price level C) real GDP; real GDP D) real GDP; the price level
How is monopolistic competition like perfect competition? How is it like monopoly?
What will be an ideal response?
Hold the prices of goods, as well as Amy's preferences, constant. If Amy's income increases, then
a. both her indifference curves and budget constraint change. b. her indifference curves change, but her budget constraint does not change. c. her budget constraint changes, but her indifference curves do not change. d. neither her indifference curves nor her budget constraint change.
A monopolist's supply of a good is
A. dependent on the monopolist's demand curve and its marginal cost curve. B. given by the portion of the monopolist's marginal cost curve that lies above the average variable cost curve. C. given by the portion of the monopolist's average variable cost curve that lies above the marginal cost curve. D. independent of the monopolist's demand curve.