Critics of advertising argue that advertising
a. creates demand for products that people otherwise do not want or need.
b. lowers barriers to entry into an industry because new firms can more easily establish themselves as competitors.
c. increases competition by providing information about prices.
d. encourages monopolization of markets by raising entry barriers.
a
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The wage premium in the United States represents a
a. cost of higher education. b. decreasing return to higher education. c. higher return to college education. d. result of declining college attendance since 1973.
Answer the following question with a starting point of simultaneous long run and short run macroeconomic equilibrium, with the overall production level in the economy at the natural rate level of real GDP (YNR). This equilibrium may be illustrated in a diagram with the average price level (P) measured on the vertical axis, and real GDP (Y) measured on the horizontal axis. The long run equilibrium is represented by the intersection of the vertical long run aggregrate supply function (LRAS), and the downward sloping aggregate demand function (AD). The short run equilibrium is represented by the intersection of the upward sloping short run aggregate supply function (SRAS), and the downward sloping aggregate demand function (AD). (See the diagram on the left panel.)
Question: If a recession were to occur as a result of an inward shift in the AD function (see the diagram on the right panel), the result is: A) A decrease in the average price level (P), and an increase in real GDP (Y). B) An increase in the average price level (P), and an increase in real GDP (Y). C) An increase in the average price level (P), and a decrease in real GDP (Y). D) A decrease in the average price level (P), and a decrease in real GDP (Y). E) No change in the average price level (P), and no change in real GDP (Y).
There is a
a. short-run tradeoff between inflation and unemployment. b. short-run tradeoff between the actual unemployment rate and the natural rate of unemployment. c. long-run tradeoff between inflation and unemployment. d. long-run tradeoff between the actual unemployment rate and the natural rate of unemployment.
Adam Smith believed that if people were free to pursue their own interests.
What will be an ideal response?