In the graph showing aggregate demand and aggregate supply after a negative supply shock, we can see that high energy prices in the late 1970s caused ______.
a. an increase in price levels and a decrease in RGDP
b. a decrease in price levels and an increase in RGDP
c. an increase in both price levels and RGDP
d. a decrease in both price levels and RGDP
a. an increase in price levels and a decrease in RGDP
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Assume the economy is headed into a recession. Considering this, and recognizing that firms are slow to change the prices they charge for their products, are firms more or less likely to be able to pursue an effective markup pricing strategy in their
pursuit of positive economic profit? Why?
If major traders believe the price of a stock should be higher than its current market price,
A) they have an incentive to sell the stock. B) their actions will result in the information they possess being incorporated into the price of the stock. C) there is little they can do because government regulation precludes their acting on what they know. D) they should petition the Securities and Exchange Commission to authorize an adjustment in the price of the stock.
Preferred stock differs from common stock in all the following ways except it
a. does not carry voting privileges b. represents corporate debt, not ownership c. pays dividends to preferred stockholders first d. pays a fixed dividend e. has a prior claim on dividends
When a good is more narrowly defined (for example, airline travel versus Delta Airlines travel),
a. it will have fewer available substitutes so demand will be more elastic. b. it will have fewer available substitutes so demand will be less elastic. c. it will have more available substitutes so demand will be more elastic. d. it will have more available substitutes so demand will be less elastic.