The aggregate demand curve is downward sloping for all of the following reasons EXCEPT for the:
A. impact of inflation on the consumer price index (CPI).
B. distributional impact of inflation on spending.
C. response of the Fed to inflation through its policy reaction function.
D. effect of inflation on the value of money.
Answer: A
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Refer to Figure 15-7. Use the figure above to answer the following questions
a. What is the profit-maximizing quantity and what price will the monopolist charge? b. What is the total revenue at the profit-maximizing output level? c. What is the total cost at the profit-maximizing output level? d. What is the profit? e. What is the profit per unit (average profit) at the profit-maximizing output level? f. If this industry was organized as a perfectly competitive industry, what would be the profit-maximizing price and quantity?
On the graph above, a movement from point ________ to point ________ might represent a positive supply shock
A) F; I B) H; G C) H; F D) F; G E) none of the above
If the firms hires 5 workers, the average variable costs equals
a. $200 b. $50 c. $80 d. $40
Human societies have typically run out of resources before substitutes have been discovered or developed
Indicate whether the statement is true or false