Refer to the figure. Which of the long-run aggregate-supply curves is consistent with long-run equilibrium?
a. both LRAS2 and LRAS3
b. LRAS3
c. LRAS1
d. LRAS2
Ans: d. LRAS2
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The Fed's narrowest measure of money is ________
A) M1 B) M2 C) M3 D) all of the above E) none of the above
Inflation increases uncertainty in the markets because:
A. consumers must put more effort into shopping to find the best price. B. it is more difficult to stay aware of how one product compares in cost to another. C. sellers raise the prices of their products very gradually and predictably.
Price discrimination is the
A. pricing of a product so that not everyone can afford it. B. refusal by a firm to sell to all customers. C. selling of a given product at more than one price when the price difference is unrelated to cost differences. D. selling of a given product at more than one price when the price differences reflect cost differences.
One major difference between PPOs (preferred providers organizations) and HMOs (health maintenance organizations) is that:
A. PPOs set rates for various medical services or procedures, while HMOs allow their doctors and clinics to set their own rates B. PPOs seek to reduce health care costs by controlling prices, while HMOs seek to reduce costs by restricting quantity consumed C. HMOs employ their own physicians or contract for specialized services with outside providers, while PPOs have arrangements with a network of providers D. HMOs seek to reduce costs by capping the rates for various services, while PPOs seek to ration health care by having waiting periods