In the aggregate demand-aggregate supply model, an increase in the price level will
a. increase money demand, raise the interest rate, reduce aggregate expenditure, and decrease equilibrium real GDP
b. decrease money demand, lower the interest rate, increase aggregate expenditure, and increase real GDP
c. increase the money supply, lower the interest rate, increase aggregate expenditure, and increase real GDP
d. decrease the money supply, raise the interest rate, reduce aggregate expenditure, and decrease real GDP
e. not change money supply, money demand or the interest rate, but will shift the aggregate demand curve to the right
A
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Use the following graph for a monopolistically competitive firm to answer the next question.
In the short run, this monopolistically competitive firm will set price at
A. $65 and produce 35 units of output. B. $55 and produce 45 units of output. C. $50 and produce 35 units of output. D. $52 and produce 50 units of output.
Diversification
A) maximizes risk. B) maximizes profit. C) minimizes risk. D) minimizes costs.
Which of the following is an example of a monopoly?
a) Many firms supply the same product essentially, but each has significant brand loyalty b) One large firm supplies the entire product to the market c) One firm supplies 60 percent of the product to the market and there are two other rival firms d) A few large firms supply the entire product to the market
Terry consumes three hamburgers at McDonald's. He figures out that the last hamburger he ate was just worth the price he paid for it. If the price of a hamburger is $1, _____.
a. ?he has a consumer surplus on the third hamburger alone b. ?he has a consumer surplus on the first hamburger c. ?he would have a consumer surplus if he eats one more hamburger d. ?he has no consumer surplus e. ?he has a consumer surplus on the first two hamburgers