Today, producers changed their expectations about the future. This change
a. can cause a movement along a supply curve.
b. can affect future supply, but not today's supply.
c. can affect today's supply.
d. cannot affect either today's supply or future supply.
c
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
Darryl runs a ranch in Jackson, Wyoming. The interest on the debt he incurred to buy his ranch totals $3,000 per year. For Darryl, the interest is
A) an implicit cost. B) an explicit cost. C) his normal cost. D) his normal profit. E) part of his economic profit.
An individual seller in perfect competition will not sell at a price lower than the market price because
A) the seller can sell any quantity she wants at the prevailing market price. B) demand for the product will exceed supply. C) the seller would start a price war. D) demand is perfectly inelastic.
The real exchange rate is an adjustment of the nominal exchange rate to account for
a. inflation at home and abroad b. supply and demand in the market c. government's assessment of its value d. currency amounts held by governments e. none of the above