Refer to the above figures. A tariff is placed on a foreign good. Which figures represents the situation in the domestic market for a competing domestic good?
A. Panel A
B. Panel B
C. Panel C
D. Panel D
Answer: C
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In the long run, all firms in a monopolistically competitive industry make
A) negative accounting profit. B) zero accounting profit. C) an economic profit. D) zero economic profit.
If the government wished to shift aggregate demand to the left, it might:
A. decrease military spending. B. increase the amount of educational grants available. C. decrease corporate income taxes. D. All of these would cause a decrease in aggregate demand.
Financial intermediaries:
a) increase transaction costs. b) increase information costs. c) increase overall risk to savers in order to make more money. d) allow a greater flow of funds between savers and investors.
Demand-pull inflation is illustrated in the short run aggregate supply-aggregate demand model as a shift of the aggregate ________.
A. demand to the left B. demand to the right C. supply to the left D. supply to the right