If the economy is operating at a point beyond its institutional production possibilities frontier (institutional PPF), then the economy is
A) producing Natural Real GDP and operating at the natural unemployment rate.
B) producing less than Natural Real GDP and operating below the natural unemployment rate.
C) producing more than Natural Real GDP and operating above the natural unemployment rate.
D) producing more than Natural Real GDP and operating below the natural unemployment rate.
E) none of the above
D
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The FE line shows the level of output at which the ________ market is in equilibrium
A) Goods B) Asset C) Labor D) Money
In the long run aggregate:
A. demand is fixed. B. supply is fixed. C. demand tends to shift to the right. D. supply tends to shift to the left.
According to A.P. Lerner, splitting income equally among individuals was most appropriate for maximizing combined satisfaction
Indicate whether the statement is true or false
A monopoly differs from monopolistic competition in that
A) a monopoly has market power while a firm in monopolistic competition does not have any market power. B) a monopoly can never make a loss but a firm in monopolistic competition can. C) a monopoly faces a perfectly inelastic demand curve while a monopolistic competitor faces an elastic demand curve. D) in a monopoly there are significant entry barriers but there are low barriers to entry in a monopolistically competitive market structure.