If the aggregate demand curve shift rightward less than expected...
What will be an ideal response?
real GDP will be less than potential GDP
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A difference between a perfectly competitive market equilibrium and a perfect price discrimination equilibrium is that in a competitive market ________, whereas in perfect price discrimination ________
A) all units are sold where P = MC; only the last unit sold is at P = MC B) deadweight loss varies depending on the shape of the MC curve; deadweight loss increases C) consumers are better off; producers lose some sales due to high prices. D) All of the above.
According to the figure shown:
A. there is no stable equilibrium to the game.
B. both players will act in their own self-interest and get a stable, but less than optimum, equilibrium.
C. both players will act in their own self-interest and get an optimum equilibrium that is stable.
D. both players have an incentive to charge a low price and undercut the competition.
Diamonds are expensive because:
A. very few diamonds are discovered each year. B. the seller of most diamonds in the world restricts output. C. they are a symbol of luxury. D. they are a form of conspicuous consumption.
Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 120 Japanese yen, but it finds that the value of yen is appreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?
A) Buy more Japanese goods. B) Buy U.S. dollars. C) Sell U.S. dollars. D) Encourage U.S. investments abroad.