Refer to the diagram for a monopolistically competitive producer. This firm is experiencing:
A. a shortage of production capacity.
B. excess capacity of CD.
C. excess capacity of DE.
D. diseconomies of scale.
C. excess capacity of DE.
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If the MPC in an economy is 0.8, government could shift the aggregate demand curve rightward by $100 billion by
A. increasing government purchases by $25 billion. B. decreasing taxes by $25 billion. C. increasing government purchases by $80 billion. D. decreasing taxes by $100 billion.
Economic agents can raise money capital by ________
A) issuing liabilities B) repaying a loan C) paying taxes D) providing a subsidy
In combating stagflation, a government-induced:
a. increase in aggregate demand would help reduce inflation but aggravate unemployment. b. decrease in aggregate demand would help reduce unemployment but aggravate inflation. c. increase in aggregate demand would help reduce unemployment but aggravate inflation. d. decrease in aggregate demand would help reduce both unemployment and inflation. e. increase in aggregate demand would help reduce both unemployment and inflation.
If people expect the price of a stock to rise in future, the demand curve for the stock:
a. becomes positively sloped. b. shifts to the right. c. becomes horizontal. d. becomes vertical. e. shifts to the left.