According to the short-run aggregate supply curve, if output minus potential output equals zero, then ________
A) unemployment might be zero
B) inflation might be stable
C) expected inflation must be stable
D) price shocks must be zero
E) none of the above
B
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In a competitive market the ________ curve shows the marginal benefit received by consumers and the ________ curve shows the marginal cost to producers
A) demand; market demand B) supply; demand C) supply; market supply D) demand; supply
The bulk of offshoring is vertical, relating to producing a component piece in an overall supply chain production
Indicate whether the statement is true or false
If inflationary expectations increase, we can infer that: a. unemployment is above the natural rate
b. the economy is not on the long-run Phillips curve. c. the short-run Phillips curve is shifting to the left. d. output is below potential GDP. e. the unemployment rate is at the natural rate.
In the long run, a profit-maximizing monopolistically competitive firm sells at a price that is:
A. equal to average total cost, but higher than marginal cost. B. equal to average total cost, but lower than marginal cost. C. equal to demand, but higher than average total cost and marginal cost. D. equal to marginal cost and marginal revenue.