Refer to the information provided in Figure 27.2 below to answer the question(s) that follow.
Figure 27.2Refer to Figure 27.2. Firms respond to an increase in government spending by mostly increasing output when the aggregate demand curve shifts from
A. AD1 to AD2.
B. AD3 to AD4.
C. AD5 to AD6.
D. AD6 to AD1.
Answer: A
You might also like to view...
If the demand for tacos increases,
a. the supply of corn increases b. the supply of corn decreases c. the demand for corn increases d. the demand for corn decreases e. the price of corn falls
Which of the following is most likely to happen if the Federal Trade Commission (FTC) wins a suit against alleged violators of antitrust law?
a. The FTC will receive compensation up to three times the damage caused. b. The FTC will not be able to impose substantial penalties. c. The FTC will force firms to break up through dissolution. d. The FTC will force firms to merge together. e. The FTC will file criminal actions that may result in fines but not prison sentences.
When profits exist in a competitive price-searcher market,
a. rival firms will be attracted into the market. b. high barriers to entry will prevent rival firms from entering the market. c. product differentiation will prevent new firms from making a profit. d. the profits will persist because the firms face a downward-sloping demand curve.
A market situation where a small number of sellers dominate the entire industry is called:
A. monopolistic competition. B. monopsony. C. monopoly. D. oligopoly.