In a market, competitive forces guarantee that any price other than the equilibrium price is:
a. market-clearing.
b. stable
c. temporary.
d. unaffordable.
c
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Firms use information on labor's marginal revenue product to determine
A) how much marginal product to produce at each wage rate. B) how many workers to hire at each wage rate. C) how much to produce at each output price. D) how much labor services to supply at each wage rate.
American farmers who sell beef to Europe benefit most from
A) a decrease in the dollar price of euros. B) an increase in the dollar price of euros. C) a constant dollar price for euros. D) a European ban on imports of American beef.
If the central bank did not follow the Taylor principle, an increase in inflation would lead to a decrease in ________
A) the nominal interest B) the real interest rate C) aggregate output D) all of the above E) none of the above
The short-run aggregate supply curve shows ________ while the long-run aggregate supply curve shows ________.
A. potential output; the current inflation rate B. the current inflation rate; potential output C. potential output; aggregate spending D. output; aggregate spending