A monopolistically competitive firm in short-run equilibrium:
A) will make negative profit (lose money).
B) will make zero profit (break-even).
C) will make positive profit.
D) Any of the above are possible.
D
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Refer to the graphs shown.
Which of the following combinations of points best illustrates rational consumer choice assuming the consumer's budget is $60, the price of X is $3, and the price of Y is $3?
A. A and D B. C and F C. B and E D. A and F
When a change in the price level leads to a change in the quantity of net exports demanded, it is called the:
What will be an ideal response?
Answer the next question based on the following list of factors that are related to the aggregate demand curve. 1) Real-Balances Effect2) Household Expectations3) Interest-Rate Effect4) Personal Income Tax Rates5) Profit Expectations6) National Income Abroad7) Government Spending8) Foreign Purchases Effect9) Exchange Rates10) Degree of Excess CapacityChanges in which two of the factors would most likely cause a shift in aggregate demand due to a change in consumer spending?
A. 1 and 3 B. 8 and 9 C. 2 and 4 D. 2 and 10