A decrease in the price level will:
a. increase the quantity of RGDP supplied, but not increase short-run aggregate supply.
b. decrease the quantity of RGDP supplied, but not decrease short-run aggregate supply.
c. increase short-run aggregate supply
d. decrease short-run aggregate supply.
b
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If you want to know the present value of $10,000 received a year from today, and the interest rate is 4 percent, what formula can you use?
A) Present value equals $10,000 times 0.04. B) Present value equals 1.04 divided by $10,000. C) Present value equals $10,000 divided by 1.04 D) Present value equals $10,000 times 1.04.
Monopolistic competition and perfect competition are different in that monopolistically competitive firms: a. cannot earn profits in the short run
b. face firm demand curves that are less elastic than perfectly competitive firms. c. face substantial barriers to entry. d. earn economic profits in the long run.
Which of the following is true of cost-push inflation?
a. Cost-push inflation is associated with an economic expansion. b. Cost-push inflation is rarely experienced in developed economies. c. Cost-push inflation is caused by a decrease in aggregate supply. d. Cost-push inflation is identical to demand-pull inflation. e. Cost-push inflation is the result of increased consumer spending.
The “free rider” problem occurs when a good is
A. not available. B. not excludable. C. not depletable. D. not sold in free markets.