An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply.
B. increase in aggregate demand.
C. increase in short-run aggregate supply.
D. decrease in aggregate demand.
Answer: D
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
Figure36-8
?
Which of the graphs in Figure 36-8 illustrates the AD–AS shifts associated with an expansionary monetary policy?
A. 1 B. 2 C. 3 D. 4
Figure 10-2
Figure 10-2 shows demand and short-run cost curves for a perfectly competitive firm. At its profit-maximizing level of output, the firm's short-run TC is represented by area
a.
ADFO.
b.
BGHC.
c.
BGIO.
d.
ADGIO.
Which of the following is a problem inherent in centrally planned economies?
A) There are no problems and everyone, including consumers, is satisfied. B) There is too much production of low-cost, high-quality goods and services. C) Production managers are more concerned with satisfying government's orders than with satisfying consumer wants. D) Unemployment is too high.