According to modern Keynesian analysis, an increase in aggregate demand leads to a higher price level because the
A. short-run aggregate supply curve is upward sloping.
B. aggregate demand curve is upward horizontal.
C. aggregate demand curve is upward sloping.
D. short-run aggregate supply curve is vertical.
Answer: A
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The number of US households with access to the Internet is growing rapidly. Compared to 50 years ago, one would predict that when considering a major purchase, people today will gather:
A. more information because the Internet has lowered the cost of gathering information. B. less information because the Internet has lowered the cost of gathering information. C. more information because the Internet has increased the cost of gathering information. D. less information because the Internet has increased the benefit of gathering information.
Specialization and trade
A) does not benefit anyone. B) allows nations to produce inside their individual production possibilities frontier. C) allows nations to consume combinations of products that are outside their individual production possibilities frontier. D) shifts the production possibilities frontier inward. E) shifts the production possibilities frontier outward.
Persistent increases in the overall level of prices have been the norm
a. True b. False Indicate whether the statement is true or false
Assume a purely competitive firm is maximizing profit at some output at which long-run average total cost is at a minimum. Then:
A. the firm is earning an economic profit. B. there is no tendency for the firm's industry to expand or contract. C. allocative but not productive efficiency is being achieved. D. other firms will enter this industry.