Suppose that firms in a monopolistically competitive industry are earning short-run economic profits. In the long run, the demand curve facing each individual firm can be expected to
a. shift to the left and become flatter
b. shift to the left and become steeper
c. shift to the right and become flatter
d. shift to the right and become steeper
e. remain constant
A
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If unplanned inventory changes are positive, what is the relationship between aggregate planned expenditure and real GDP?
What will be an ideal response?
The average cost curve shows the total cost divided by quantity produced for various levels of output.
Answer the following statement true (T) or false (F)
In the short run, a sales tax is:
a. wholly absorbed by the producer. b. shared between the consumer and the producer. c. deferred until the market is able to re-establish an equilibrium price. d. wholly absorbed by the consumer.
Assume that when $100 of new reserves enter the banking system, the money supply ultimately increases by $800 . Assume also that no banks hold excess reserves and that the entire money supply consists of bank deposits. If, at a point in time, reserves for all banks amount to $750, then at that same point in time, loans for all banks amount to $6,000
a. True b. False Indicate whether the statement is true or false