If profit per unit equals (price - cost per unit) and costs are temporarily fixed, then the aggregate supply curve will have
a. a basic "U" shape.
b. a negative slope.
c. a positive slope.
d. All of the above could be correct.
c
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In the research that used the audit method to send 38 people to purchase new cars from car dealers in Chicago, the lowest prices were quoted to
A) black women. B) white women. C) black men. D) white men.
As the world economy grew during the 1920s, the gold standard proved to be:
A) a real problem because the quantity of gold could not keep pace with economic expansion, resulting in severe deflation. B) a boon to importers and exporters. C) highly inflationary. D) well-suited to new methods of transferring gold stocks between nations.
An increase in the supply of labor generates
A. lower wages. B. an offsetting increase in the demand for labor. C. a decrease in the quantity demanded of labor. D. increased unemployment.
The mechanism behind the inflation insulation provided by a floating exchange rate is
A) Purchasing Power Parity. B) a fixed AA curve. C) market speculation. D) tight monetary policy. E) symmetry.