An increase in AD will trigger less inflation under which of the following conditions?
a. AD is relatively steep.
b. AD is relatively flat.
c. AS is relatively steep.
d. AS is relatively flat.
d
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Which of the following best describes a deliberate government decision to lower the exchange rate, E?
A) appreciation B) depreciation C) revaluation D) devaluation E) accumulation
Although an improvement in technology enables perfectly competitive firms to earn a positive economic profit in the short run, entry by new firms will ensure that those profits are eliminated over time
Indicate whether the statement is true or false
Consider two points on the PPF: point A, at which there are 50 oranges and 100 apricots, and point B, at which there are 51 oranges and 98 apricots. If the economy is currently at point B, the opportunity cost of moving to point A is
A) 2 apricots. B) 1 orange. C) 98 apricots. D) 3 oranges.
In the long run, the economy will be near full employment, and crowding out is the stronger force.
Answer the following statement true (T) or false (F)