If the economy is in the vertical portion of the AS curve, what will be the effect of an increase in the price level on output produced?
A. Output will increase at a very rapid rate
B. Output will not change
C. Output will only slightly increase
D. Output change cannot be predicted from information given
B. Output will not change
You might also like to view...
In the United States and in virtually every other country, the printing of money is
A. limited by the supplies of gold and silver the central bank holds in reserve. B. strictly a government monopoly. C. open to the free market so that different monies can compete for acceptance with one another. D. a privilege that is allowed only to banks that are members of the Federal Reserve System.
The share of long-term unemployment:
A. increases with the amount of labor market rigidity, which explains why the United States has more long-term unemployment than Europe. B. decreases with the amount of labor market rigidity, which explains why Europe has more long-term unemployment than the United States. C. increases with the amount of labor market rigidity, which explains why Europe has more long-term unemployment than the United States. D. decreases with the amount of labor market rigidity, which explains why the United States has more long-term unemployment than Europe
When a monopoly operates in a contestable market:
A.) it charges the same price as an ordinary monopoly. B.) it is unable to charge a price above cost without inducing entry by a rival firm. C.) it is able to form a cartel with the other large firms and charge prices considerably above cost. D.) Both A and B are true.
The opportunity cost of the chosen item or activity is the value of the best alternative you must pass up.
a) false b) True