At the intersection of the short-run aggregate supply curve, the aggregate demand curve, and the long-run aggregate supply curve, the economy is in:
A. neither a short-run nor long-run equilibrium.
B. a short-run equilibrium but not a long-run equilibrium.
C. both a short-run and long-run equilibrium.
D. a long-run equilibrium but not a short-run equilibrium.
Answer: C
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Z is a normal good. The equilibrium price and quantity of Z in the year 2011 was $25 and 60 units, respectively. In 2014, the equilibrium price of Z had increased to $35 but the equilibrium quantity had decreased to 50 units
Other things remaining the same, which of the following could explain this change? A) Shift of the supply curve of Z to the left B) Shift of the supply curve of Z to the right C) Shift of the demand curve for Z to the left D) Shift of the demand curve for Z to the right
Pinnacle Finance Bank has a 12 percent reserve requirement ratio. What is Pinnacle Finance’s money multiplier?
a. 6 b. 1.2 c. 8.33 d. 12
Fixed costs exist only in:
A. labor-intensive markets. B. the long run. C. the short run. D. capital-intensive markets.
A graphical tool that provides a visual representation of the consequences of alternative strategies is a:
A. game tree. B. network. C. strategy set. D. decision node.