The aggregate-demand curve
a. has a slope that is explained in the same way as the slope of the demand curve for a particular product.
b. is vertical in the long run.
c. shows an inverse relation between the price level and the quantity of all goods and services demanded.
d. All of the above are correct.
c
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The costs of inflation that arise from trying to reduce cash holdings are known as
A) diminishing costs. B) menu costs. C) chain-index costs. D) shoe leather costs.
During 2009, General Motors announced that it would close its Saturn facilities in the United States because of the foreign competition it faced. This corporate move
A) increased structural unemployment. B) increased avoidable unemployment. C) increased cyclical unemployment. D) had no impact on unemployment. E) decreased frictional unemployment.
From the date a U.S. patent is granted to a firm, it ceases to be a potential source of monopoly profits after
A) 20 years. B) 14 years. C) 10 years. D) 7 years.
Which of the following is not one of the five fundamental questions that an economy must deal with?
What will be an ideal response?