Assuming the economy is starting at the natural rate of output and everything else held constant, the effect of ________ in aggregate ________ is a rise in both inflation and output in the short-run,
but in the long-run the only effect is a rise in inflation.
A) a decrease; supply
B) a decrease; demand
C) an increase; supply
D) an increase; demand
D
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X-inefficiency refers to the situation in which firms with market power are operating in the upward-sloping segment of their long-run average cost curve
Indicate whether the statement is true or false
Money is assumed to earn
A) no interest at all, being just currency in hand. B) in checkable deposit form a rate below "the interest rate." C) in checkable deposit form a rate equal to "the interest rate." D) in checkable deposit form a rate above "the interest rate."
A monopolist can earn a positive economic profit, even in the long run
a. True b. False Indicate whether the statement is true or false
When a country allows trade and becomes an importer of a good,
a. both domestic producers and domestic consumers become better off. b. domestic producers become better off, and domestic consumers become worse off. c. domestic producers become worse off, and domestic consumers become better off. d. both domestic producers and domestic consumers become worse off.