As the aggregate demand curve shifts rightward along a given aggregate supply curve,
a. unemployment and inflation are higher.
b. unemployment and inflation are lower.
c. unemployment is higher and inflation is lower.
d. unemployment is lower and inflation is higher.
d
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The figure above shows the demand and cost curves for a single-price monopoly. What economic profit does this firm make?
A) zero B) $600 C) $400 D) $200
Holding all else constant, a decrease in consumption taxes, such as sales taxes or a VAT, will ________ aggregate expenditure and ________ employment
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
All of the following are characteristics of monopolistic competition EXCEPT
A) a few firms dominate the industry. B) product differentiation. C) many firms in the industry. D) advertising.
All of the following would cause the production possibilities curve to shift outward EXCEPT
A) an improvement in technology. B) an increase in the amount of labor available. C) a decline in the unemployment rate. D) an increase in the level of capital stock.