Which will be TRUE for a monopolistic competitor experiencing short-run losses?
A. P < ATC
B. P < MC
C. P > ATC
D. P = ATC
Answer: A
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An open-market purchase of foreign bonds to increase a central bank's international reserves:
A. increases the central bank's liabilities and decreases its assets. B. increases the central bank's liabilities and assets. C. decreases the central bank's assets and liabilities. D. increases the central bank's assets but decreases its liabilities.
If demand increases and supply decreases, the change in the equilibrium price will be ________, and the change in the equilibrium quantity will be ________.
A. uncertain; positive B. positive; uncertain C. positive; positive D. positive; negative
During the 2007–2008 recession the U.S. economy moved from E1 to e2 to e3. Which of the following statements is accurate?
a. The move from E1 to e2 was facilitated by a shift from SRAS2 to SRAS1.
b. While the economy was at e2 there was an inflationary gap.
c. The move from e2 to e3 was facilitated by a shift from AD2 to AD3.
d. While the economy was at e3 unemployment was unusually low.
The best way to think of the short run and the long run is as
A) specific periods of time, although the time periods may differ across industries. B) planning terms that apply to managers. C) concepts that apply to all people who work for a firm. D) a concept that only accountants are concerned with.