The figure above shows a monopolistically competitive firm in the short run. During the transition to the long run, the demand curve will shift ________ and the MR curve will shift ________
A) leftward; leftward
B) leftward; rightward
C) rightward; leftward
D) rightward; rightward
A
You might also like to view...
When potential GDP increases, the potential GDP line ________, and the aggregate supply curve ________
A) shifts rightward; shifts rightward B) shifts rightward; shifts leftward C) shifts leftward; shifts rightward D) shifts leftward; shifts leftward E) shifts rightward; does not shift
The willingness to pay of buyers' in a market:
A. explains why the demand curve is bowed-out. B. is represented by the supply curve. C. explains why the demand curve is bowed-in. D. is represented by the demand curve.
A growth recession occurs when
a) there are two successive quarters of negative GDP growth b) economic growth is so rapid that it creates inflation c) real GDP is growing but nominal GDP is not d) potential GDP declines e) GDP grows at a slower rate than its long run trend
Given the strict quantity theory of money, if the quantity of money were decreased by 50 percent, prices would:
A. fall by 50 percent. B. rise by 50 percent. C. increase by 100 percent. D. decrease by 100 percent.