Aggregate demand's downward-sloping character reflects three principal influences as shown in which of the following?
A. People's desire to maintain real wealth holdings, the interest rate, and international trade.
B. People's desire to increase the price level, the interest rate, and the economic growth effect.
C. The interest rate, the economic growth effect, and international trade.
D. Cost-pull inflation, demand-pull inflation, and the need to maintain real wealth holdings.
Answer: A
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The Law of Demand states that:
A) the demand for a commodity is mostly influenced by consumers' income. B) the quantity demanded of a commodity is the same for all consumers in a perfectly competitive market. C) the quantity demanded of a commodity varies inversely with the price of the commodity. D) the demand for a commodity always equals the supply of the commodity.
When demand for a firm's product decreases, the firm can take a number of steps to adjust costs and quantities supplied to the market. Some are listed below. Which actions are short run and which are long run? Explain your reasoning
a. Layoff 25 percent of the firm's existing employees. b. Declare bankruptcy and sell all of the firm's plant and equipment. c. Require management personnel to take a significant cut in pay. d. Furlough employees for 3 days each month. e. Move to a smaller production facility.
How might long policy lags impact the divine coincidence?
What will be an ideal response?
Refer to the above graph for a monopolist in short-run equilibrium. This monopolist has total cost equal to area:
A. 0CFQ B. ADFC C. CADF D. 0ADQ