In the short run, the monopolist should continue to produce whenever
a. price is greater than zero
b. price is less than average total cost
c. price is greater than average variable cost
d. price divided by average total cost exceeds the ratio of marginal cost to average cost at the optimal output
e. price is less than average variable cost at the optimal output
C
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The multiplier effect is the series of ________ increases in ________ expenditures that result from an initial increase in ________ expenditures
A) autonomous; consumption; induced B) autonomous; investment; induced C) induced; consumption; autonomous D) induced; investment; autonomous
Under a fixed exchange rate system, the exchange rate
a. is equal to one. b. fluctuates as the price of gold fluctuates. c. is fixed and interest rates must vary in response to balance of payment movements. d. can periodically change as economic conditions change.
Contrary to what believers in the Phillips curve would say, U.S. economic data from 1955 to 2000 show evidence of:
a. a positive relationship between the unemployment rate and inflation. b. no short-run relationship between the unemployment rate and inflation. c. increases in both unemployment and inflation rates. d. a constant rate of inflation, with changing rates of unemployment. e. a constant rate of unemployment, with changing rates of inflation.
Refer to the provided production possibilities curves. Curve (a) is the initial curve for the economy. If the economy's production possibilities then shift to curve (b), then
What will be an ideal response?