In the mid-1970s, changes in oil prices greatly affected U.S. inflation. When oil prices rose, the U.S. would experience:
A. Cost-push inflation and rising output
B. Demand-pull inflation and rising output
C. Cost-push inflation and falling output
D. Demand-pull inflation and falling output
C. Cost-push inflation and falling output
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A monopolistically competitive firm ________ in the long run
A) earns low but positive economic profits B) earns high economic profits C) earns zero economic profits D) incurs losses
Jeong's uncompensated demand for gizmos is given by Q = 30 - 2p. Jeong's marginal willingness to pay function is
A) 30-2p. B) 15-.5Q. C) 30-2Q. D) -2.
In general, the unemployment rate does not vary greatly by:
A. educational status. B. gender. C. age. D. height
Which one of the following statements is TRUE?
A. The investment function is positively sloped to reflect the fact that lower interest rates cause more firms to expand their operations. B. The investment function is positively sloped to reflect the fact that higher interest rates cause more people to invest their funds. C. Along a given investment function, lower interest rates result in more investment projects being undertaken. D. Along a given investment function, higher interest rates result in more investment projects being undertaken.