In the "classical" region of the aggregate supply curve,
A. the economy is at the maximum output level, so only the composition of output can be changed, the quantity of output cannot be increased.
B. the economy is on the production possibilities frontier.
C. attempts to expand output will result in increases in both prices and output.
D. the economy is at the maximum output level, so only the composition of output can be changed, the quantity of output cannot be increased AND the economy is on the production possibilities frontier.
D. the economy is at the maximum output level, so only the composition of output can be changed, the quantity of output cannot be increased AND the economy is on the production possibilities frontier.
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Which of the following is a difference between a monopolistically competitive market and a monopoly in the long run?
A) Firms in a monopolistically competitive market earn zero economic profits in the long run, while a monopolist usually earns positive economic profits in the long run. B) Firms in a monopolistically competitive market earn zero economic profits in the long run, while a monopolist incurs losses in the long run. C) Firms in a monopolistically competitive market charge a price higher than marginal cost in the long run, while a monopolist charges a price equal to marginal cost in the long run. D) Firms in a monopolistically competitive market charge a price lower than marginal cost in the long run, while a monopolist charges a price equal to marginal cost in the long run.
The view that union wage demands may be a source of inflation would be best associated with cost-push inflation
a. True b. False Indicate whether the statement is true or false
Which of the following is a result of the health care reform enacted in 2010? a. Everyone in the U.S. must purchase health-care coverage or pay a fine
b. Every firm with more than 50 employees must offer health-care coverage. c. Health insurance companies must cover everyone that applies regardless of preexisting conditions. d. all of the above
Which of the following is not correct?
a. If the inflation rate exceeds the nominal interest rate, then the purchasing power of an interest-earning deposit falls over time. b. If there is deflation, then the purchasing power of an interest-earning deposit rises by more than the nominal interest rate over time. c. The higher the rate of inflation, the smaller the increase in the purchasing power of an interest-earning deposit. d. The purchasing power of an interest-earning deposit can increase or decrease over time, but it cannot stay the same.