Refer to the below graph for a representative firm in monopolistic competition in a constant-cost industry. This firm is:
A. In short-run equilibrium, but not long-run equilibrium
B. In long-run equilibrium, but not short-run equilibrium
C. In both short-run and long-run equilibrium
D. Not in either short-run or long-run equilibrium
A. In short-run equilibrium, but not long-run equilibrium
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Refer to the above figure. Which of the following statements is TRUE?
A. Panel A shows a change in quantity supplied and Panel B shows a change in supply. B. Panel A shows a change in supply and Panel B shows a change in quantity supplied. C. Panel A shows an increase in supply and Panel B shows a decrease in supply. D. Both Panels A and B show an increase in supply.
The Federal Reserve affecting the supply of money is known as
A. growth policy. B. supply side policy. C. monetary policy. D. fiscal policy.
Compared to high school graduates, what is likely to happen to employment and wages for college graduates during a recession?
What will be an ideal response?