The long-run aggregate supply curve is:
What will be an ideal response?
vertical at the level of full employment output
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An oligopoly model in which sellers compete on prices rather than quantities is called a ________ model
A) Bertrand B) Cournot C) Ricardian D) Keynesian
If people generally believe that "you get what you pay for," it is reasonable for them to:
A. make every effort to get complete information about a product before making a purchase to make sure that the purchase is optimal. B. assume that a cheaper brand is always a better deal than expensive brands. C. assume that an expensive item is of higher quality, creating the possibility of an upward-sloping demand curve. D. assume that an expensive item is of higher quality, which eliminates the possibility of an upward-sloping demand curve.
Assume there is no government or foreign sector. If the multiplier is 2, a $20 billion increase in planned investment will cause aggregate output to increase by
A. $5 billion. B. $10 billion. C. $20 billion. D. $40 billion.
Unseasonably warm weather in Georgia resulted in a bumper crop of peaches. Ceteris paribus,
A. the supply of peaches decreased and the price of peaches increased. B. the supply of peaches increased and the price of peaches decreased. C. the demand for peaches decreased and the price of peaches decreased. D. the demand for peaches increased and the price of peaches increased.