So many buyers and sellers that each has only a small on the market price and output
What will be an ideal response?
competetive market
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If the price level falls and the money wage rate does not change, some firms ________ and there is ________
A) shut down; a leftward shift of the aggregate supply curve B) start up; a rightward shift of the aggregate supply curve C) start up; an increase in potential GDP D) shut down; a decrease in the quantity of real GDP supplied E) shut down; a decrease in potential GDP
The interest rate effect suggests that the negative slope of the aggregate demand curve results at least in part because changes in the price level affect: a. domestic purchases of foreign goods
b. the holdings of money by households and firms. c. the real purchasing power of assets. d. the level of income.
Refer to the information provided in Figure 6.15 below to answer the question that follows.
Figure 6.15Refer to Figure 6.15. Why is Jason not maximizing his utility at point B?
A. His marginal utility per dollar spent on the last sandwich is less than his marginal utility per dollar spent on his last hot dog. B. He is not spending his entire budget. C. His marginal utility per dollar spent on the last sandwich is greater than his marginal utility per dollar spent on his last hot dog. D. He is maximizing his utility at point B.
Stagflation occurs when inflation ________ and GDP ________
A) rises; falls B) falls; rises C) falls; falls D) rises; rises