The aggregate demand curve shows the:
a. Direct relationship between the price level and real GDP produced
b. Inverse relationship between interest rates and real GDP produced
c. Inverse relationship between the price level and real GDP purchased
d. Direct relationship between real-balances and real GDP purchased
c. Inverse relationship between the price level and real GDP purchased
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The largest part of what the United States produces today is ________ such as ________
A) goods; food and electronic equipment B) goods; education and entertainment C) services; trade and health care D) services; textbooks and computers
Suppose the equilibrium price in a perfectly competitive industry is $100 and a firm in the industry charges $112 . Which of the following will happen?
a. The firm will not sell any of its output. b. The firm will sell more output than its competitors. c. The firm's profits will increase. d. The firm's revenue will increase. e. The firm will gradually take over the entire industry.
If Stimpson University increases tuition in order to increase its revenue, it will:
a. not be successful if the demand curve slopes downward. b. be successful if demand is elastic. c. be successful if demand is inelastic. d. be successful if supply is elastic. e. be successful if supply is inelastic.
If a price-taking firm selling in a competitive market raises the price of its product above the market-clearing price, it will: a. increase its profits
b. maintain its profit base since the demand for the product is inelastic. c. be able to increase its sales. d. not be able to sell any output.