The government might engage in expansionary fiscal policy if it wanted to
A) shift the aggregate demand curve to the left. B) reduce the level of unemployment.
C) reduce real GDP. D) reduce the price level.
B
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A rise in domestic productivity tends to __________ domestic prices and causes the dollar to __________ relative to foreign currencies
A) raise; appreciate B) raise; depreciate C) lower; appreciate D) lower; depreciate
A market structure in which there is one large firm that has a major share of the market and many smaller firms supplying the remainder of the market is called:
A) the Stackelberg Model. B) the kinked demand curve model. C) the dominant firm model. D) the Cournot model. E) the Bertrand model.
Graphically, a firm's profit per unit of output can be found by:
a. the triangle formed under the demand curve. b. the rectangle formed under the demand curve at a given price and quantity combination. c. the rectangle formed under the average-total-cost curve at a given ATC and quantity combination. d. the distance between the demand and average-total-cost curves at any level of output. e. the distance between the horizontal axis and the average-total-cost curves at any level of output.
If both the supply and demand for computer games increase, then the equilibrium price of the games: a. is indeterminate and the equilibrium quantity rises
b. is indeterminate and the equilibrium quantity falls. c. falls and the equilibrium quantity also falls. d. falls and the change in equilibrium quantity is indeterminate.