At all points below the current LM curve,
A) the supply of output exceeds output demand.
B) the supply of output falls short of output demand.
C) the supply of money falls short of money demand.
D) the supply of money exceeds money demand.
C
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When a conflict arises in a major oil-exporting area of the world, such as the Middle East, the price of gasoline already in the storage tanks at local gas stations usually increases. Which of the following best explains this occurrence?
a. Gas station owners anticipate consumers will buy more gasoline as gasoline prices increase. b. Gas station owners are attempting to repeal the laws of supply and demand. c. Gas station owners anticipate higher replacement costs for their supply of gasoline and, therefore, raise their prices in response to this higher expected cost. d. A decline in consumer demand generally causes gas station owners to raise their prices.
Matthew bakes apple pies that he sells at the local farmer's market. If the price of apples increases, the
a. supply curve for Matthew's pies will increase. b. supply curve for Matthew's pies will decrease. c. demand curve for Matthew's pies will increase. d. demand curve for Matthew's pies will decrease.
In which of the following market structures can a firm earn an economic profit in the short run?
a. Perfect competition b. Monopolistic competition c. Monopoly d. All of these market structures can earn an economic profit in the short run
If P denotes the price of goods and services measured in terms of money, then
a. 1/P represents the value of money measured in terms of goods and services. b. P can be interpreted as the inflation rate. c. the supply of money influences the value of P, but the demand for money does not. d. All of the above are correct.