In the long-run ISLM model and with everything else held constant, as long as the level of output ________ the natural rate level, the price level will continue to ________, shifting the LM curve to the ________, until finally output is back at the
natural rate level. A) exceeds; rise; right
B) exceeds; rise; left
C) remains below; fall; left
D) remains below; rise; right
B
You might also like to view...
The initial supply and demand curves for a good are illustrated in the above figure. If there are technological advances in the production of the good, then the new equilibrium price for the good
A) is less than $6. B) is $6. C) is more than $6. D) could be less than, equal to, or more than $6.
Because there is no formal agreement among the participating firms, firms that engage in tacit collusion are exempt from prosecution under the anti-trust laws
Indicate whether the statement is true or false
First-degree and second-degree price discrimination are similar in each of the following ways except which one?
A) They both convert consumer surplus into additional economic profit. B) In both practices, firms earn greater economic profit than if they charged a single price for every unit. C) In both practices, consumers pay higher prices for the first units that they buy. D) They both yield the greatest possible profits to the firm.
Sellers in a perfectly competitive market make special arrangements to deal with particular customers and stand to lose value if their relationship with those customers ends
Indicate whether the statement is true or false