In the Keynesian framework, as long as output is below the equilibrium level, unplanned inventory investment will remain ________ and firms will continue to ________ production
A) negative; lower
B) negative; raise
C) positive; lower
D) positive; raise
B
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Fill in the blank: Firms under perfect competition would enjoy ________ market power
A) absolutely no B) some C) much D) total
According to the circular flow model, an increase in spending by businesses on productive resources would cause the income and spending of consumers to increase
Indicate whether the statement is true or false
When a demand curve is perfectly elastic:
A) marginal revenue = average revenue = price. B) marginal revenue > average revenue = price. C) marginal revenue < average revenue = price. D) marginal revenue > average revenue > price.
In the extended classical model, an unanticipated increase in the money supply would cause output to ________ and the price level to ________ in the short run
A) increase; increase B) decrease; remain unchanged C) remain unchanged; increase D) decrease; decrease