Which of the following conditions is characteristic of a monopolistically competitive firm in short-run equilibrium?
a. P > AR
b. MR > MC
c. P > MC
d. All of the above are correct.
c
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The joining of the eastern and western sections of nation's first transcontinental railroad was commemorated with the driving of the last spike on May 10, 1869:
a. in Salt Lake City. b. in Washington, D.C. c. at Promontory Point. d. on the rim of the Grand Canyon.
The theory that changes in the exchange rate reflect only changes in the price levels of two countries is called
a. the floating exchange rate theory b. the fixed exchange rate theory c. the flexible exchange rate theory d. purchasing power parity e. the managed exchange rate theory
A price index in years beyond the base year:
A. is never 100. B. can be less than, greater than, or equal to 100. C. is always less than 100. D. is always greater than 100.
A inflationary gap occurs in the economy when
A) Aggregate demand is perfectly elastic. B) Aggregate demand is greater than full employment output. C) Aggregate demand is greater than potential GDP. D) None of the above.