During the 1970s, real shocks to the U.S. economy caused:
a. an increase in both aggregate demand and aggregate supply.
b. an increase in both the price level and the unemployment rate.
c. a leftward shift of the Phillips curve.
d. a decline in inflation but higher unemployment.
e. a decline in both the price level and the unemployment rate.
b
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Suppose market demand is p = 10 - Q. Firms have a fixed entry cost of 5 and no marginal cost. If firm A is the incumbent, can it deter the entry of its rival, firm B?
What will be an ideal response?
If the interest rate rises to 25% would the investment still take place?
a. Yes since NPV>0 b. No since NPV<0 c. Yes since the present value of the cash flows is greater than zero d. No since the present value of the cash flows is lesser than zero
The two basic reasons why a monopoly exists are barriers to entry and cost advantages
a. True b. False Indicate whether the statement is true or false
Since World War II, the share of total income going to the bottom 20 percent of U.S. households has
A) fallen by 20 percent. B) increased by 10 percent. C) remained constant. D) more than doubled.