An expansionary monetary policy increases net exports by ________ interest rates and ________ the value of the dollar
A) lowering nominal; decreasing
B) lowering real; decreasing
C) raising nominal; increasing
D) raising real; increasing
B
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Refer to Figure 12-10. The firm's short-run supply curve is its
A) marginal cost curve. B) marginal cost curve from d and above. C) marginal cost curve from b and above. D) marginal cost curve from c and above.
Suppose the cafeteria at a university puts healthy foods such as fruit and yogurt in an easily accessible location but places junk foods somewhere slightly less prominent. This would be an example of a(n):
A. nudge. B. push. C. irrational behavior. D. incentive compatibility problem.
Refer to the graph below. A decrease in supply would best be reflected by a change from:
A. Point 2 to point 1
B. Point 5 to point 1
C. Point 5 to point 2
D. Point 3 to point 6
In contrast with perfect competition, excess capacity characterizes monopolistic competition. Excess capacity is due to which of the following?
A) Monopolistically competitive firms produce at the minimum point on their average total cost curves. B) Monopolistically competitive firms face downward-sloping demand curves. In the long run, firms produce where their demand curves are tangent to their long-run average total cost curves. C) Monopolistically competitive firms produce where marginal revenue is equal to marginal cost. D) Monopolistically competitive markets have low barriers to entry.