Assuming the same costs, a monopoly will:
A) produce more and charge a higher price than a perfectly competitive firm.
B) produce less and charge a higher price than a perfectly competitive firm.
C) produce less and charge a lower price than a perfectly competitive firm.
D) produce more and charge a lower price than a perfectly competitive firm.
Answer: B) produce less and charge a higher price than a perfectly competitive firm.
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If firms' expectations about the future become pessimistic so that they think future profits will be lower, then
A) aggregate demand decreases and the AD curve shifts leftward. B) aggregate demand increases and the AD curve shifts rightward. C) the quantity of real GDP demanded decreases, and there is a movement up along the AD curve. D) the quantity of real GDP demanded increases, and there is a movement down along the AD curve. E) the aggregate demand curve does not shift, but potential GDP decreases.
The curve showing the short-run relationship between the ________ and the ________ is called the Phillips curve
A) unemployment rate; inflation rate B) exchange rate; real interest rate C) price level; real GDP D) nominal interest rate; real interest rate
During 2011 the inflation rate in Brazil was about 6.6% while in the U.S. it was about 3.3%. At the start of 2011 the nominal exchange rate was about 1.7 Brazilian real per U.S. dollar. If purchasing-power parity holds, about what should the nominal exchange rate have been at the end of 2011? Show your work
In 1979, under the ERM, the member countries were pegged to the ECU, with a ______ band of fluctuation allowed.
A) 2.5% B) 2.25% C) 1% D) 10%