If supply is inelastic, then a demand shift will have a ____ effect on _______ than on quantity.
A. smaller; price
B. smaller; supply
C. bigger; price
D. bigger; supply
Answer: C
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If the public believes that the commitment to a nominal anchor is not credible, the effect of a positive aggregate demand shock is for ________
A) short-run aggregate supply to shift down B) short-run aggregate supply to remain unchanged C) short-run aggregate supply to shift up D) inflation, but not economic activity, to increase
Is a single-price monopoly efficient?
A) Yes, because it creates a deadweight loss. B) No, because it creates a deadweight loss. C) Yes, because consumers gain and producers lose some of their surpluses. D) Yes, because consumers lose and producers gain some of their surpluses. E) Yes, because it produces the quantity at which MR = MC.
In the short run, all prices are flexible.
a. true b. false
The long run is a planning period:
A. during which the firm can vary all inputs including its plant size. B. less than six months. C. less than one year. D. less than five years.