An economy experiences real growth over time with stable aggregate demand. This would likely result in
A) decreasing prices. B) increased unemployment.
C) increasing prices. D) secular inflation.
A
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In the above figure, the total producer surplus at the efficient level of output is ________
A) $4.5 million B) $9.0 million C) $2.5 million D) $3.0 million
Refer to Scenario 1 . What is the economic significance of 25 fish captured and 25 crabs captured?
What will be an ideal response?
Which of the following statements is correct? With respect to efficiency wage models,
a. their key element is an explanation of why the efficiency (or productivity) of workers depends on the real wage. b. the rationale underlying those models implies that firms will set the real wage above the market clearing level. c. they explain a real wage rigidity. d. all of the above
Which of the following methods can be used to sustain a cartel?
A) removing barriers to entry B) trade groups C) acts of self-interest D) the use of binding contracts