The vertical long-run aggregate supply curve reflects the fact that in the long run, an increase in the price level
What will be an ideal response?
Will not alter the economy's maximum sustainable rate of output.
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GDP data alluding to the start of a recession in January 2015 was published and analyzed by the Fed in July 2015. The Fed then had to hold meetings to formulate a monetary policy to deal with the recession, and then enact the chosen policy
This exemplifies a(n) A) recognition lag. B) implementation lag. C) impact lag. D) liquidity lag.
In the simple linear regression model, the regression slope
A) indicates by how many percent Y increases, given a one percent increase in X. B) when multiplied with the explanatory variable will give you the predicted Y. C) indicates by how many units Y increases, given a one unit increase in X. D) represents the elasticity of Y on X.
The Hawaiian island of Lana'i is privately owned by Castle & Cooke and for generations most of its land was used to grow pineapples. Now, many of the pineapple fields have been replaced by tourist accommodations, including a pair of world-class hotels and a top rated golf course. What would an economist say about this change in land-use patterns?
A) While growing pineapples used the island's land more efficiently, tourism provides utility to the largest number of people. B) Economic rent has allocated the island's resources to their highest-valued use: tourism. C) Agriculture is still the land's highest-valued and most efficient use, but tourism earns more profits for Castle & Cooke. D) To find the land's economic rent, add the price per acre that land on Lana'i would be worth if used to grow pineapples to the value per acre when used for a golf course.
Kyra's Vedic Secrets produces hair masks and hair spa products. The firm advertises a secret natural ingredient used in its products that completely stops hair fall and improves hair growth. Consumers have a high perception of its products' quality and are ready to pay a marginally higher price for its products than for its rival's products. The firm described in this example is operating in a(n)
_____. a. perfectly competitive market b. monopoly c. oligopoly d. monopolistically competitive market