In the long run, an increase in government purchases of military equipment would cause output to ________ and the aggregate price level to ________.
A. fall; stay constant
B. fall; fall
C. stay constant; fall
D. stay constant; rise
Answer: D
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If more firms enter the telecommunications industry, we can expect the equilibrium price of telecom services to decrease and the equilibrium number of services to increase
a. True b. False Indicate whether the statement is true or false
An increase in demand is represented by a
a. movement downward and to the right along a demand curve. b. movement upward and to the left along a demand curve. c. rightward shift of a demand curve. d. leftward shift of a demand curve.
The difference between the maximum amount consumers are willing and able to pay for each unit of a good and the amount consumers actually do pay is called:
a. consumer surplus. b. marginal benefit. c. marginal cost. d. productive efficiency.
Explain why the equimarginal rule is a necessary condition for utility maximization.
What will be an ideal response?