Refer to the diagram. The move of the economy from c to e on short-run Phillips Curve PC 2 would be explained by an:
A. increase in aggregate demand in the economy.
B. increase in aggregate supply in the economy.
C. actual rate of inflation that is less than the expected rate.
D. actual rate of inflation that exceeds the expected rate.
C. actual rate of inflation that is less than the expected rate.
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Suppose the supply curve and the demand curve both have unitary elasticity at all prices. The price increase to consumers resulting from a specific tax of $1 imposed on sellers will be
A) $1. B) 50 cents. C) zero. D) Impossible to calculate without knowing the slope of the supply curve.
When demand falls and supply stays the same, equilibrium price ______ and equilibrium quantity ________.
Fill in the blank(s) with the appropriate word(s).
Which of the following is the price at which the trader is willing to sell foreign currency?
A) offer B) bid C) spread D) cross rate
Suppose that the implicit cost for a business was $2,000 and the explicit cost was $5,000 and that the firm sold 1,000 units of its products at $7 per item. We can conclude that the firm's
A. accounting and economic profits were both $0. B. accounting profit was $7,000, and its economic profit was $0. C. accounting profit was $2,000, and economic profit cannot be determined. D. accounting profit was $2,000, and economic profit was $0.