How is the short-run supply curve of a perfectly competitive market different from the long-run supply curve?
The short-run market supply curve is upward rising and is positively related to the price level. The long-run supply curve on the other hand is horizontal as economic profits are zero in the long run.
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In a market for homogenous goods:
A. firms sell identical products. B. firms sell different products. C. firms sell identical products for identical prices. D. firms sell different goods for identical prices.
Refer to Figure 9.1. Assume the economy is initially at point A. The initial change from a shock that increases investment expenditure is best represented by which short-run equilibrium combination of price level and real GDP?
A) P2; Y2 B) P3; Y2 C) P1; Y2 D) P2; Y1
By 2030, the number of workers per Social Security beneficiary will be approximately
a. two. b. three. c. four. d. six.
A foreign exchange intervention that alters the domestic monetary base is:
A. impossible. B. not likely to change domestic interest rates. C. sterilized. D. unsterilized.