Explain how the S-curve reflects the typical nature of complementarities?
What will be an ideal response?
See pages 168-171 for a good explanation.
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
A monopolist faces a demand curve that is equal to:
a. the demand curve faced by perfectly competitive producers. b. the market demand curve. c. the monopolist's own marginal cost curve. d. the monopolist's own marginal revenue.
Which of the following statements about a perfectly competitive market is incorrect?
A. There are many sellers, each supplying a small quantity. B. There are many buyers, each purchasing a small quantity. C. The market sell homogeneous products. D. Buyers and sellers cannot enter exit the market freely.
When increasing its output results in falling costs, a firm that can adjust all inputs is experiencing
A. loss. B. diseconomies of scale. C. capital gains. D. economies of scale.