Aggregate supply describes the behavior of
What will be an ideal response?
producers
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
An indirect effect of monetary policy is that as the money supply
A) increases, interest rates fall, and borrowing and spending increase. B) increases, interest rates rise, and borrowing and spending decrease. C) decreases, interest rates rise, and borrowing and spending increase. D) decreases, interest rates fall, and borrowing and spending increase.
Total profit of a competitive firm can be found by multiplying profit per unit and units sold.
Answer the following statement true (T) or false (F)
McDonald's introduced the "Big Mac" in 1968 and it turned out to be a hit, but the "Arch Deluxe" introduced in 1996 was not. The success or failure of a product in the market system is determined by:
A. Capitalism and entrepreneurship B. Specialization and exchange C. Consumer sovereignty and dollar votes D. Capital goods and roundabout production