Refer to the diagram. Suppose that aggregate demand increased from AD 1 to AD 2 . For the price level to stay constant:
A. the aggregate supply curve would have to shift rightward.
B. the aggregate supply curve would have to shift leftward.
C. real domestic output would have to remain constant.
D. the aggregate supply curve would have to be vertical.
A. the aggregate supply curve would have to shift rightward.
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Which of the following is characteristics is common to both monopoly and monopolistic competition?
A) Ease of entry into the industry. B) Firms are price setters. C) A relatively large number of sellers. D) Long-run economic profit equals 0.
When a government raises its budget deficit, then that country's
a. national saving rises, so its supply of loanable funds shifts right. b. national saving falls, so its supply of loanable funds shifts left. c. national saving rises, so its demand for loanable funds shifts right. d. national saving falls, so its demand for loanable funds shifts left.
Refer to the labor market diagram where D is the labor demand curve, S is the labor supply curve, and MRC is the marginal resource (labor) cost curve. An inclusive union could increase the level of employment above that which the monopsonist would provide if it could get the monopsonist to agree to any wage rate:
A. below $7.
B. between $5 and $8.
C. above $5.
D. above $8.
The slope of an indifference curve is called the
A. bliss gradient. B. happiness slope. C. average transformation rate. D. marginal rate of substitution.