If in the short run prices did not respond at all to changes in aggregate demand, the short-run aggregate supply curve would
A) be vertical.
B) be horizontal.
C) slope up.
D) slope down.
B
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Which of the following scenarios would most likely occur with a company that has reported disappointing earnings recently but still looks to be financially stable for quite some time?
A. high long-term solvency ratio but low profitability ratio B. high short-term solvency ratio but low profitability ratio C. high long-term solvency ratio but low activity ratio D. high short-term solvency ratio but low activity ratio
A monopolist will increase output to the point where MR equals MC and not beyond.
Answer the following statement true (T) or false (F)
When analyzing the impact of government consumption and taxes in an open economy, we assume that:
a. the reasons for changing fiscal policy are not important. b. government deficits are a problem for the domestic and international economy. c. governments always have a balanced budget. d. governments often do not coordinate their tax and spending policies with those of other nations.
The Phillips curve is built on the assumption that business fluctuations are
A. from the demand side. B. from the supply side. C. from both the demand and supply side. D. purely random events.