Within the framework of the AS/AD model, which of the following is a true statement regarding short-run aggregate supply?
a. An increase in prices temporarily improves profit margins because important components of costs are fixed in the short run.
b. An increase in prices leads to higher interest rates, which temporarily improves profit margins.
c. An increase in prices leads to an expansion in the money supply, which stimulates additional output.
d. An increase in prices increases real wage rates and thereby expands the size of the economy's resource base.
A
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In the figure above, a single-price unregulated monopoly will produce an amount of output equal to
A) h. B) j. C) k. D) none of the above.
The first antitrust law in the United States was the
A) FTC Act. B) Clayton Act. C) Sherman Act. D) Robinson-Patman Act.
When Social Security checks were first issued the nominal amount:
A. stayed the same for the life of the payments. B. regularly increased by 5 % every 3 months. C. regularly increased by 10 % every 3 years. D. stayed 3% above the poverty level for all recipients.
How do consumers react to a tax on an item with few or no substitutes?
a. They stop consuming the product. b. They consume a bit less. c. They consume considerably less. d. They consume a bit more.