Refer to the above figure. Suppose the economy is in equilibrium at point A. If rational expectations exist, an increase in aggregate demand caused by an anticipated increase in the money supply will cause the economy to
A) stay at point A. B) move to point B. C) move to point C. D) move to point D.
C
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Disadvantages of experiments include the fact that:
A. decisions made in the laboratory replicate those made in the real world. B. laboratory experiments introduce influences on decision making that are difficult to measure or control. C. the number of subjects is typically so large, that it is difficult to apply the results to economic behavior in the population. D. decisions made in the laboratory replicate those made in the real world and the number of subjects is typically so large, that it is difficult to apply the results to economic behavior in the population.
Life expectancy at birth for the world rose from 24 years to 26 years between 1000 and 1820, but by 2003, life expectancy had risen to
a. 36 years. b. 44 years. c. 52 years. d. 64 years.
The theory of monopolistic competition predicts that in long-run equilibrium a monopolistically competitive firm will:
a. operate at minimum long-run average cost. b. overutilize its insufficient capacity. c. None of these choices are correct. d. produce at the level in which price equals long-run average cost.
If the length of time from the market-day supply to the long-run supply is ordered from the shortest to the longest time span for the number of new Subway sandwich franchises, board-feet of walnut lumber, teenage workers at amusement parks in the summer, and pounds of tomatoes at a summertime farmers' market we would have
a. pounds of tomatoes, teenage workers, Subway franchises, walnut lumber b. teenage workers, Subway franchises, walnut lumber, pounds of tomatoes c. Subway franchises. walnut lumber pounds of tomatoes d. teenage workers, pounds of tomatoes, Subway franchises, walnut lumber e. pounds of tomatoes, teenage workers, Subway franchises, walnut lumber