What is the outcome of demand-side policies when aggregate supply is upward-sloping?
What will be an ideal response?
In the upward-sloping portion of the aggregate supply curve, a rightward shift of aggregate demand will cause an increase in output and an increase in the price level. A leftward shift in aggregate demand will cause a decrease in output and a decrease in the price level. The change in the price level reduces the impact of the fiscal action.
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Refer to Figure 3-5. At a price of $10, the quantity sold
A) is 2 units. B) is 4 units. C) is 6 units. D) is 8 units.
The information lag facing the Fed is
A) the difficulty of becoming informed quickly of changes in public opinion about which policy goal is most important. B) the delay in receiving accurate information about the state of the economy. C) the delay in Congress and the President communicating their policy goals for the Fed to act on. D) the time required for monetary policy changes to affect output, employment, and prices.
A positive aspect of monopolies is that they may aid innovation in the marketplace.
Answer the following statement true (T) or false (F)
The profit-maximizing price charged by a monopolistic competitor is always equal to its average total cost of production
a. True b. False Indicate whether the statement is true or false