Which of the following explains the effect of prices on profits in the short-run?
a. The direct relationship between aggregate quantity demanded and national output.
b. The direct relationship between aggregate quantity supplied and the price level.
c. The inverse relationship between aggregate quantity demanded and national output.
d. The inverse relationship between aggregate quantity supplied and profits.
e. The inverse relationship between aggregate quantity supplied and national output.
b
You might also like to view...
In the above figure, the sum of real planned investment spending, government expenditures, and net export spending is equal to
A) $0.5 trillion. B) $1.0 trillion. C) $1.5 trillion. D) $2.0 trillion.
Which of the following is not considered a unilateral transfer?
a. foreign aid from one government to another b. income earned from foreign investments c. personal gifts to friends in foreign countries d. donations to foreign countries from non-government domestic charities e. government transfers to foreign residents
Which of the following is an advantage to the pollution-rights approach to environmental quality?
a. Polluters are compelled to clean up completely. b. Polluters have appropriate incentives to clean up. c. This is a method of direct government regulation. d. Compliance with legal guidelines is discretionary.
If there is a surplus in the U.S. loanable funds market, then the interest rate
a. rises, which increases quantity of loanable funds demanded. b. rises, which decreases the quantity of loanable funds demanded. c. falls, which increases the quantity of loanable funds demanded. d. falls, which decreases the quantity of loanable funds demanded.