Use the following figure to answer the next question.
A shift from AD1 shifts to AD2 would be consistent with what economic event in U.S. history?
A. demand-pull inflation in the late 1960s
B. recession in 2007-09
C. cost-push inflation in the mid-1970s
D. full-employment in the late 1990s
Answer: A
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Use the following diagram to answer the next question.
Assume the economy is initially at the full employment level of real GDP. A decrease in net exports will ________.
A. reduce the full employment level of real GDP B. reduce output in the economy C. raise the price level D. reduce the unemployment rate
A group of nations that grants member special trade privileges is
A) World Trade Organization. B) European Union. C) General Agreement on Tariffs and Trade. D) North American Free Trade Agreement.
The value of a stock depends on the ability of the company to generate dividends and the expected price of the stock when the stockholder sells her shares
a. True b. False Indicate whether the statement is true or false
Using time-series data, the demand function for a profit-maximizing monopolist has been estimated asQd = 142,000 - 500P + 6M - 400PRwhere Qd is the amount sold, P is price, M is income, and PR is the price of a related good. The estimated values for M and PR in 2014 are $25,000 and $200, respectively. The short-run marginal cost curve for this firm has been estimated as:MC = 200 - 0.024Q + 0.000006Q2Total fixed cost is forecast to be $500,000 in 2016.What is the average variable cost function?
A. AVC = 200 - 0.048Q + 0.000036Q2 B. AVC = 200 - 0.048Q + 0.000012Q2 C. AVC = 200 - 0.012Q + 0.000018Q2 D. AVC = 200 -0.012Q + 0.000002Q2