A sudden, unexpected increase in the economy’s prevailing wage level due to a general strike threat would
a) shift the aggregate demand curve out and push equilibrium prices down
b) shift the aggregate demand curve in and push equilibrium output down
c) shift the short run aggregate supply curve in and push equilibrium prices up
d) shift the Phillips Curve in and increase the natural rate of unemployment
e) shift the long run aggregate supply curve out and push equilibrium prices down
c) shift the short run aggregate supply curve in and push equilibrium prices up
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The "kinked" oligopoly demand curve is a result of the assumption by an oligopolist that:
a. price increases will be matched, but price reductions will not. b. price increases will not be matched, but price reductions will. c. both price increases and price reductions will be matched. d. neither price increases, nor price reductions will be matched.
In the short run, a firm cannot change its level of output
Indicate whether the statement is true or false
What does the Herfindahl-Hirschman Index value near zero imply about the market?
a. Monopoly b. Perfect competition c. Monopolistic competition d. Oligopoly
Refer to the graph shown, which depicts a perfectly competitive firm. To maximize profit, the firm represented will produce:
A. 40 units of output. B. 90 units of output. C. 130 units of output. D. 110 units of output.