Income on the horizontal axis at which the vertical distance to the 45-degree line is less than the vertical distance to the Ep line gives rise to ________-than-equal planned expenditures, and so we must be ________ the equilibrium level of income
A) less, below
B) less, above
C) greater, below
D) greater, above
C
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In the mid-1830s, the U.S. entered an inflationary period that culminated in the depression of 1839-1843 . Contemporary economic historians attribute this economic downturn to
a. the demise of the Second Bank of the U.S. in 1832. b. over-issue of gold coins by the U.S. Mint. c. over-expansion by the manufacturing sector. d. external forces, including large inflows of specie from Mexico and Europe.
In long-run equilibrium, the typical perfectly competitive firm will:
a. earn zero economic profit. b. change plant size in the long run. c. change output in the short run. d. do any of these.
Which of the following would cause stagflation?
a. rising government expenditures b. rising oil prices c. a falling money supply d. technical progress
A group of producers that agree to coordinate their production is called a
A. vertical merger. B. monopoly. C. free market competition. D. cartel.