If there is currently an inflationary gap, an increase in aggregate demand will make the inflationary gap smaller, but a decrease in aggregate demand would make the inflationary gap larger
a. True
b. False
Indicate whether the statement is true or false
False
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In the figure above, at the market price of $15, the consumer surplus equals
A) $10,000. B) $30,000. C) $40,000. D) 2,000 units. E) $20,000.
Which of the following factors causes economic growth?
a. a decline in capital goods production b. a loss of resources c. the production of more scarce goods d. a technological improvement e. the production of more consumer goods
One of the effects of gas prices rising from about $2 to about $4 per gallon was airlines ordering new, fuel-efficient aircraft
a. True b. False Indicate whether the statement is true or false
Since the end of the war in the Persian Gulf, the world price of oil has fallen. But in some areas, consumers have seen little relief at the pump. This phenomenon can be explained by the theory of:
A. oligopoly. B. perfect competition. C. monopolistic competition. D. monopoly.