In the view of the Classical economists, rising aggregate demand leads to
A) lower unemployment.
B) inflation.
C) higher unemployment.
D) deflation.
B
You might also like to view...
If a 5 percent increase in price results in a 3 percent increase in the quantity supplied, the elasticity of supply is
A) 0.30. B) 0.60. C) 1.20. D) 1.66.
Refer to Figure 7-6. Answer the following questions:
1. What would be the equilibrium price and quantity if consumers had to pay the full price of medical services? 2. With insurance acting as a third-party payer, what price will consumers pay for medical service? 3. With insurance acting as a third-party payer, what price will doctors receive for medical service? 4. With insurance acting as a third-party payer, what will be the equilibrium quantity of medical services? 5. With insurance acting as a third-party payer, what will be the value of the deadweight loss?
The forces that determine the cost of production are largely independent of the forces that shape demand
a. True b. False
Monopolistic competitors and perfect competitors are alike in: a. facing horizontal demand curves
b. earning zero economic profit in the short run. c. earning zero economic profit in the long run. d. relying on advertising to attract buyers to their products.