A devaluation causes which of the following to occur in the medium run?
A) an increase in net exports
B) an increase in the price level
C) an increase in output
D) all of the above
E) none of the above
B
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Which of the following best explains why monopolistically competitive firms face a downward sloping demand curve while perfectly competitive firms do not?
A) Monopolistically competitive firms sell a differentiated good. B) Monopolistically competitive industries have only a few firms. C) Monopolistically competitive firms have barriers to entry. D) Only industries with free entry and exit have firms that face horizontal demand curves.
"Every major contraction in the U.S. economy has either been created or greatly exacerbated by monetary instability. Every major inflation has been caused by monetary expansion." Which of the following economists made this statement?
a. Adam Smith b. John Maynard Keynes c. Milton Friedman d. Paul Samuelson
Refer to the above graph. The immediate-short-run aggregate supply curve would be represented by which line?
A. 1 B. 2 C. 3 D. 4
The absolute value of the slope of an indifference curve equals the ratio of the marginal utilities of the two goods involved
Indicate whether the statement is true or false