Consider the above figure. If the aggregate demand went from AD2 to AD3, our nation would have gone from
A) a recessionary gap to an inflationary ga
A
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For monopoly
A) the four-firm concentration ratio is 100. B) the Herfindahl-Hirschman Index is 10,000. C) there is only one firm in the industry. D) All of the above answers are correct.
Two economists from Ohio University estimated that the demand curve for kerosene in Indonesia was such that a 10 percent increase in the price reduced the quantity demanded by 2.2 percent and that a 10 percent increase in the price of electricity increased the demand for kerosene by 1.6 percent. This indicates that (i) the demand for kerosene is price inelastic and (ii) kerosene and electricity are substitutes. Which of these two statements is correct?
A. i and ii B. i not ii C. ii not i D. neither i nor ii
Free trade may be good for a nation, but not for everyone in the nation. Explain why free trade is controversial and the list the justifications that proponents of trade adjustment assistance offer in support of those policies
What will be an ideal response?
Decrease in the real interest rate will ________ the expenditure curve:
A) decrease. B) increase. C) not change. D) none of the above.