A price ceiling that sets the price of a good below market equilibrium will cause:
a. An increase in quantity demanded of the good.
b. A decrease in quantity supplied of the good.
c. A shortage of the good.
d. All of these.
d
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Holding other factors constant, an incline in the price of new capital goods will:
A. decrease investment. B. decrease national saving. C. increase investment. D. increase national saving.
The vertical long-run Phillips curve
a. shows the Fed's employment options b. is vertical because the Fed refuses to change the unemployment rate in the long run c. indicates that the Fed cannot affect the unemployment rate in the long run d. is fixed permanently e. measures recessionary pressures
Figure 13-2
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In Figure 13-2, which of the graphs represents a monopolistic competitor in long-run equilibrium?
A. 1 B. 2 C. 3 D. 4
Which of these situations produces the largest profits for oligopolists?
a. The firms reach a Nash equilibrium. b. The firms reach the monopoly outcome. c. The firms reach the competitive outcome. d. The firms produce a quantity of output that lies between the competitive outcome and the monopoly outcome.