According to Keynesians, an increase in the money supply will have its least impact on GDP when the aggregate demand curve intersects:
a. the horizontal portion of the aggregate supply curve.
b. the vertical portion of the aggregate supply curve.
c. the upward sloping portion of the aggregate supply curve.
d. either the horizontal or upward sloping portion of the aggregate supply curve.
e. either the horizontal or upward sloping portion of the aggregate supply curve.
b
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In a competitive industry some firms earn positive economic profits while some earn zero economic profit in the long run because:
A) there exists free entry and exit of firms. B) the firms have different cost structures. C) the firms sell their output at different prices. D) the industry supply curve is perfectly elastic.
In reading the stock market quotes in the newspaper, the column with the heading "P/E" gives the
A. number of shares of the stock traded that day. B. dividend per share divided by the closing price per share. C. stock symbol for the company. D. latest closing price per share divided by the latest available earnings per share.
Macroeconomics is the study of
A) the economic issues which affect individual well-being and individual firms' profit levels. B) the economic issues which affect foreign and domestic prices of related goods and services. C) inflation and poverty at the level of the household. D) the economic issues which affect the nation's total income, employment, and output.
Assume the total utilities corresponding to the first four units of a product consumed are 8, 12, 14, and 15, respectively. The marginal utility of the second unit consumed is:
A. 0. B. 4. C. 12. D. 20.