If the Federal Reserve chooses to fight high unemployment with expansionary monetary policy and firms and consumers expect this policy to increase inflation, which of the following would you expect to see?
A) an upward shift of the short-run Phillips curve
B) a downward shift of the short-run Phillips curve
C) a decrease in the long-run aggregate supply curve
D) Both B and C are correct answers.
A
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In the Boeing/Airbus oligopoly example discussed in the text, why did Boeing and Airbus have an incentive to produce more planes than the monopoly outcome?
What will be an ideal response?
Refer to the scenario above. What is the total cost involved if Maria chooses to travel by train?
A) $60 B) $400 C) $420 D) $460
Based on the data in the table above, the efficient level of output equals
A) 550 units. B) 600 units. C) 650 units. D) 700 units.
In monopolistic competition and ________, economic profit will move towards zero.
A. monopoly B. perfect competition C. natural monopoly D. oligopoly