The firms in a perfectly competitive are making an economic profit when new firms enter. The entry shifts the short-run market supply curve ________, the market price ________, and each firm's economic profit ________
A) leftward; rises; decreases
B) rightward; rises; increases
C) rightward; falls; decreases
D) leftward; falls; decreases
C
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Repeated games can lead to tacit collusion.
Answer the following statement true (T) or false (F)
Changes in government spending or taxes designed to stimulate the economy are examples of
a. fiscal policy b. monetary policy c. supply management policy d. classical policy e. regulatory policy
An increase in nominal GDP (with inflexible prices) results in:
a. an increase in the nominal rate of interest. b. an increase in the U.S. dollar exchange rate. c. a decrease in the nominal rate of interest. d. increased price and wage flexibility.
An increase in investment and government purchases can be expected to shift the aggregate expenditures curve ________.
A. upward and the aggregate demand curve rightward B. downward and the aggregate demand curve leftward C. downward and the aggregate demand curve rightward D. upward and the aggregate demand curve leftward