Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2.
B. P2 and Y2.
C. P3 and Y1.
D. P2 and Y3.
Answer: D
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If the price elasticity of demand for moose hunting lessons is 4.23, then the demand for moose hunting lessons is
A) elastic. B) unit elastic. C) inelastic. D) perfectly unit elastic. E) perfectly elastic.
A firm in monopolistic competition ________ influence its price and ________ influence the market average price
A) can; can B) can; cannot C) cannot; can D) cannot; cannot E) can; only in the short run can
The manner in which one oligopolist reacts to a change in price, output, or quantity on the part of another oligopolist in the industry is known as
A) a positive-sum game. B) the reaction function. C) a noncooperative game. D) a zero-sum game.
How would the Great Recession of 2007–2009 be pictured in a typical production possibilities curve?
