The aggregate demand curve indicates the relationship between:
a. the real wage rate and the quality of resources demanded by producers of goods and services.
b. the interest rate and the amount of loanable funds demanded by borrowers.
c. the natural rate of unemployment and the demand for goods and services when the economy is in long-run equilibrium.
d. the general price level and the aggregate quantity of goods and services demanded.
d
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In an oligopoly with differentiated products, firms ________
A) make positive economic profits B) incur losses C) earn zero economic profits D) do not face competition from its rivals
An important feature of representative democracy is the incentive and political power it offers participants to employ legislation to increase their wealth, either through direct transfers or through favorable public expenditures and regulations. Such benefits are called ________ , and the activity that interest groups undertake to elicit these special favors is called ________
a. taxes; tax-seeking b. dividends; portfolio management c. rents; rent-seeking d. interest; investment
The model in which one firm sets its price first, and others in the industry charge the same price is known as:
a. the Nash equilibrium. b. price leadership. c. a tit for tat strategy. d. prisoners' dilemma.
For an increase in demand, the price effect is smallest and the quantity effect is largest:
A. when supply is least elastic. B. in the long run. C. in the short run. D. in the immediate market period.