A point or combination that is on the production possibilities curve is:
A. Attainable and resources are fully employed
B. Attainable, but some resources are unemployed
C. Unattainable, but some resources are unemployed
D. Attainable only if we get additional resources
Answer: A
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A firm that has taken advantage of economies of scale and expanded to become the only producer in the market is
A) a cartel. B) a natural monopoly. C) a monopolistic competitor. D) an oligopolist.
Refer to the above graph. The profit-maximizing monopolist shown sets its price at:
A. 0H. B. 0K. C. 0G. D. 0J.
The slope of the aggregate supply curve shows that, all else the same, the
A) quantity of real GDP supplied increases as the price level increases. B) price level remains constant as potential GDP increases. C) price level remains constant as real GDP increases. D) quantity of real GDP supplied remains constant as the price level increases. E) quantity of real GDP supplied decreases as the price level increases.
Use the classical (RBC) IS—LM—FE model to show the effects on the economy of a temporary beneficial supply shock; for example, a decrease in the price of oil
You should show the impact on the real wage, employment, output, the real interest rate, consumption, investment, and the price level.