When aggregate demand increases, there is a movement ________ along the AS curve and ________
A) up; an upward shift of the short-run Phillips curve
B) down; a movement down along the short-run Phillips curve
C) up; a movement up along the short-run Phillips curve
D) up; a movement down along the short-run Phillips curve
E) down; a downward shift of the short-run Phillips curve
C
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
The table above provides cost data for a perfectly competitive firm producing toy cars. The firm is producing non-divisible goods. If the market price is $70 and the firm is a profit maximizer, the firm can earn a maximum economic profit of ________
A) a loss of $500 B) a loss of $10 C) a loss of $510 D) $210
Consider the market for cable television in the figure above. This graph depicts a natural monopoly because the
A) marginal cost curve is constant. B) demand curve is downward sloping. C) average cost curve is declining as it crosses the demand curve. D) marginal revenue curve is downward sloping.
The genuine progress indicator provides a measure of social progress that:
A. focuses entirely on economic activity. B. ignores economic activity. C. is explicitly not based on value judgments. D. is explicitly based on value judgments.