A market failure that causes overconsumption of a product because the sellers know something negative about a product that the buyers do not know is called
A. imperfect information.
B. collusion.
C. regulatory capture.
D. deadweight loss.
Answer: A
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Using the data in the above table, in the long-run macroeconomic equilibrium, the price level is ________ and the level of real GDP is ________
A) 115; $10 trillion B) 110; $10 trillion C) 105; $11 trillion D) 115; $11 trillion
If we wanted to prove that macaroni is an inferior good, we would test the __________ of macaroni and get a __________
a. cross-price elasticity; negative number b. income elasticity; number less than 1 c. income elasticity; positive number d. price elasticity of demand; number greater than negative 1 e. income elasticity; negative number
The short-run aggregate supply (SRAS) curve shows the inverse relationship between the price level and the quantity of aggregate output supplied in the short run, other things constant
Indicate whether the statement is true or false
Rightward AS shifts will cause
A. Leftward Phillips curve shifts. B. Rightward Phillips curve shifts. C. Movements down and to the right along the existing Phillips curve. D. Movements up and to the left along the existing Phillips curve.