Empirical studies indicate that entry:
A. increases price and profits.
B. decreases price, but increases profits.
C. decreases price and profits.
D. increases price, but decreases profits.
Answer: C
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
If the yen to dollar exchange rate moves from 105 to 115 yen per dollar, then the dollar has ________ and the yen has ________
A) appreciated; appreciated B) appreciated; depreciated C) depreciated; depreciated D) depreciated; appreciated
If we look at the components of M2, we find that
A) money market funds are the largest component. B) savings deposits are the largest component. C) currency is the largest component. D) banks' reserves are the largest component. E) loans are the largest component.
Refer to the figure above. If the optimal number of machines rented is 100, the market rental price must be:
A) $3 per month. B) $4 per month. C) $5 per month. D) $7 per month.