In the monetarist version of the AD-AS framework, starting from long-run equilibrium, a decrease in velocity produces
A) no change in Real GDP in the short run or the long run.
B) a rise in Real GDP in both the short run and the long run.
C) a fall in Real GDP in both the short run and the long run.
D) a fall in Real GDP in the short run, but not in the long run.
E) no change in Real GDP in the short run, but a rise in the long run.
D
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In the long run, the perfectly competitive firm
A) does not have a shut down price. B) earns only a normal profit. C) may produce even if it suffers a loss. D) earns an economic profit.
The price level in Country A is 250 . The price level in Country B is 300 . If purchasing-power parity holds, what is the nominal value of Country A's currency in the market for foreign exchange with Country B? Show your work
Vertical foreclosure is an example of a firm:
A. engaging in penetration pricing. B. that merges with a rival firm with the intention of eliminating the rival firm's product from the market. C. that controls an essential upstream input and raises rivals' costs by refusing to sell to other downstream firms that need the input. D. engaging in a price-cost squeeze.
A student athlete loves cookies. He receives 200 utils for the first cookie, an additional 160 for the second, an additional 120 for the third, another 80 for the fourth, and another 40 for the fifth. The marginal utility of the fourth cookie is ________ and the total utility of consuming four cookies is ________.
A. 40; 40 B. 80; 560 C. 40; 80 D. 80; 600