An increase in aggregate demand causes an increase in ________ only in the short run, but causes an increase in ________ in both the short run and the long run
A) real GDP; real GDP B) real GDP; the price level
C) the price level; real GDP D) the price level; the price level
B
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The figure above shows the demand and cost curves for a single-price monopoly. Which of the following statements is FALSE?
A) To maximize its profit, the firm will set marginal revenue equal to zero by producing 12.5 units. B) The firm will make an economic profit. C) The firm is a not a natural monopoly. D) The firm will set price where demand is elastic.
Refer to Figure 19-3. At what level should the Thai government peg its currency to the dollar to make Thai exports cheaper to the United States?
A) less than $.03/baht B) equal to $.03/baht C) greater than $.03/baht D) $1/baht
The U.S. Justice Department, on the basis of the Herfindahl index, classifies the industries with the value:
a. below 500 as highly competitive; 500-1000 as moderately competitive; and above 1000 as highly concentrated. b. below 1000 as highly competitive; 1000-1500 as moderately competitive; and above 1500 as highly concentrated. c. below 500 as highly competitive; 500-1500 as moderately competitive; and above 1500 as highly concentrated. d. below 1000 as highly competitive; 1000-1800 as moderately competitive; and above 1800 as highly concentrated. e. below 1500 as highly competitive; 1500-2000 as moderately competitive; and above 2000 as highly concentrated.
The marginal propensity to consume (MPC) is calculated by which formula?
A. MPC = change in DI divided by change in C B. MPC = change in GDP divided by change in DI C. MPC = change in C divided by change in DI D. MPC = change in C divided by change in GDP