What are the similarities and differences between a short-run supply curve and a short-run market supply curve?
What will be an ideal response?
The main difference between the two is the number of firms being dealt with. A short-run supply curve focuses on an individual firm. However, a short-run market supply curve covers all the firms in a market, which can be in the thousands. Other than this difference, what each curve shows is similar. Both curves show the portion of the marginal cost (MC) curve above the average variable cost (AVC) curve. Also, both curves show the market prices for a product and the amount sold at each price. In addition, both display at what point market price equals average variable cost.
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Conventional money demand functions tended to ________ money demand in the middle and late 1970s, and ________ velocity beginning in 1982
A) overpredict; overpredict B) overpredict; underpredict C) underpredict; overpredict D) underpredict; underpredict
Under the rational expectations hypothesis, which of the following is the most likely effect of a shift to a more expansionary monetary policy?
a. In the short run, the real rate of output will be unaffected, but in the long run, it will increase. b. In the short run, the real rate of output will increase, but in the long run, it will be unchanged. c. There will be a permanent increase in the real rate of output, but the inflation rate will also be a little higher. d. In the short run, the impact on the real rate of output is uncertain; in the long run, it will remain unchanged.
The ________ combination of goods is the combination that yields the highest total utility given a consumer's income.
A. economical B. affordable C. optimal D. utility satiating
The major effects of a change in monetary policy on growth in the overall production of goods and services usually are felt within ______.
a. one month to six months b. two month to one year c. three months to two years d. one year to three years