When economists refer to an economy's price level, they indicate:
a. the rate of inflation in that economy
b. the prices of goods and services relative to consumers' incomes.
c. a composite measure of prices of all goods and services.
d. a period of level, or steady, prices in that economy.
e. the price of a specific consumer good.
c
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At a perfectly competitive firm's short-run break-even price
A) P = ATC. B) TR is more than TC. C) the average cost is below the total revenue line. D) P > AVC, but P < AFC.
If your long-run costs exhibit increasing returns to scale, securing big orders leads you to
a. Increase average costs b. Reduce average costs c. Keep the average costs constant d. None of the above
A leftward shift in the money demand function would result from:
a. a decrease in the money supply. b. a decrease in the price level. c. an increase in real income. d. a decrease in the interest rate. e. an increase in the interest rate
Keynesian economics
a. affirms the classical economists' basic premise concerning competitive markets b. believes that monopolies and unions tend to be permanent fixtures in our economy and the prices they create tend to be flexible, at least downward c. emphasizes that an economy can never be in equilibrium at less than full employment d. prefers to emphasize aggregate supply over aggregate demand e. believes that unemployment results when aggregate demand is insufficient to reach a full-employment level of real GDP