Within the framework of the AD/AS model, in the long run, output
What will be an ideal response?
will converge toward the economy's long-run capacity
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Which statement is false?
A. Suburbanization was the migration of tens of millions of middle-class Americans—nearly all of them white—from the cities to the suburbs. B. The people who moved to the suburbs were replaced in the cities by millions of poor people, the large majority of whom were black and Hispanic. C. The inner cities today are socially isolated from the rest of the country. D. None of these statements are false.
Z is a normal good. The equilibrium price and quantity of Z in the year 2011 was $25 and 60 units, respectively. In 2014, the equilibrium price of Z had increased to $35 but the equilibrium quantity had decreased to 50 units
Other things remaining the same, which of the following could explain this change? A) Shift of the supply curve of Z to the left B) Shift of the supply curve of Z to the right C) Shift of the demand curve for Z to the left D) Shift of the demand curve for Z to the right
In contrast to perfect competition, in a monopolistically competitive industry:
a. new firms entering the market produce a good that is identical to the existing ones. b. new firms entering the market produce a completely different product. c. there are legal restrictions on the entry of new firms. d. new firms entering the market produce a close substitute, not an identical or standardized product. e. new firms are allowed to enter the industry but there are legal restrictions on their exit.
If the cross price elasticity of demand for fries with respect to hamburgers equals -1.2, then: a. a 1% increase in the quantity of hamburgers purchased will lead to a 1.2% increase in the price of fries
b. a 10% increase in the price of a hamburger will lead to a 12% increase in the quantity of fries demanded at a given price. c. a 1% decrease in the price of a hamburger will lead to a 1.2% increase in the quantity of fries demanded at a given price. d. a 10% increase in the quantity of hamburgers purchased will lead to a 12% increase in the price of fries.